US stock futures remained higher on Monday as markets continued to assess risks from the uncertain trade policy passed by the Trump Presidential administration. Contracts attached to the open for the three main stock indices were all around 1% higher. The administration paused its aggressive reciprocal tariffs on computers and electronics over the weekend, but the President clarified that the temporary pause was only announced because sector-specific tariffs on computers and semiconductors will be placed shortly after. The moves extended the constantly-changing trade policy in the US that has triggered selloffs across equities, Treasury securities, and the dollar this month, but slight hopes that levies on Chinese electronics would be softer than expected aided companies with supply chains that depend on the world's largest manufacturer. Apple, Tesla, and Nvidia futures were sharply higher. On the earnings front, Goldman Sachs futures rose after the firm delivered strong results.
The Nikkei 225 Index jumped 1.18% to close at 33,982 while the broader Topix Index gained 0.88% to 2,489 on Monday, recouping losses from the previous session after US President Donald Trump exempted consumer electronics from his newly announced “reciprocal” tariffs, easing investor concerns and lifting market sentiment. The exemptions cover key technology products such as smartphones, computers, and semiconductors—many of which are major exports from Japan. Investors are also closely watching upcoming trade talks between Washington and Tokyo. Japan’s top trade negotiator, Akazawa Ryosei, is scheduled to meet with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer later this week. Technology stocks led the rally, with notable gains from Disco Corp (+3.7%), Tokyo Electron (+1.4%), Advantest (+4.9%), SoftBank Group (+2.3%), and Keyence (+0.7%).
Frankfurt’s DAX jumped more than 2% on Monday, trading above 22,800, in line with gains across European and global markets, after U.S. President Donald Trump announced temporary tariff exemptions on smartphones, computers, and other electronics primarily imported from China. The move spares these products from the current 145% tariffs on Chinese goods and the 10% baseline levies. However, the White House emphasized that the relief could be short-lived, with new duties on tech imports expected soon. Meanwhile, investor focus is also turning to EU-US trade talks, as EU Trade Commissioner Maros Sefcovic is reportedly set to meet with U.S. officials. Banks, tech companies, pharma stocks and basic resources were among the top gainers.
The BSE Sensex finished about 1.7% higher at 75,157.3 on Friday, reversing yesterday's decline, after US President Donald Trump declared a 90-day pause on tariff hikes for most trading partners, including India. Meanwhile, global sentiment remains fragile amid rising US-China trade tensions and due to frequent policy flip-flops in the US trade policy. Domestically, India's inflation is projected to stand at 3.6%, the lowest level since last July, raising hopes that the RBI may introduce further interest rate cuts. Tata Steel, Power Grid, NTPC, Kotak Mahindra Bank, Reliance Industries and Adani Ports were among the biggest gainers. Asian Paints and Tata Consultancy Services were the only laggards. For the week, the index fell about 0.3%, marking the 2nd straight weekly loss amid concerns over a global trade war. Indian markets will be closed on Monday for the Ambedkar Jayanti holiday.
