In the wake of the historic 90-day trade truce between the United States and China, Asian stock markets have seen significant gains. Investors are looking to capitalize on the new market environment, but uncertainties still loom. This article examines the top 5 Asian shares to watch after the US-China trade deal and the potential impact on market stability in 2025.
Introduction
The US-China trade war has been one of the most significant economic events of the past few years. After a tense period of tariff hikes and retaliations, the US and China recently agreed to a 90-day truce in May 2025. This announcement caused a surge in Asian markets, particularly in China, Hong Kong, and Japan. But will this temporary agreement provide long-term stability for these markets? In this article, we’ll explore the Asian shares that are likely to benefit the most from this shift.
Key Market Gains After the US-China Truce
The US-China truce has led to a temporary reduction in tariffs, with China cutting its tariff on US goods from 125% to 10%, and the US reducing its tariffs on Chinese goods from 145% to 30%. This positive momentum has resulted in substantial market gains across the region. However, experts caution that uncertainty remains about the future of the trade deal and potential policy shifts by President Donald Trump. For more details, visit [Reuters’ trade truce analysis]
Top 5 Asian Shares to Watch
- Tokyo’s Nikkei 225: Rising by 1.8%, Nikkei is benefiting from optimism around Japan’s automakers, including Toyota and Suzuki.
- Hong Kong’s Hang Seng: Despite a slight dip, the Hang Seng has been heavily impacted by tech stock performance, making it a key market to watch.
- Shanghai Composite: China’s stock market continues to react to changes in tariff regulations, and investors are keeping an eye on this index for potential growth. For updates, see [CNBC’s live market data](https://www.cnbc.com/world-markets/).
- South Korea’s Kospi: With steady gains, South Korea’s Kospi remains a strong performer in the region amidst the trade war thaw.
- Australia’s S&P/ASX 200: Australia’s S&P/ASX 200 shows promising growth as trade deals reduce uncertainty for the region’s exporters.
What Lies Ahead for Asian Markets?
Although the reduction in tariffs provides a temporary boost to market sentiment, the long-term outlook remains uncertain. Analysts warn that shifts in political dynamics, including potential policy changes by President Trump, could disrupt any gains made. Additionally, there are still unresolved trade issues, such as intellectual property and trade practices, that may affect the stability of the US-China relationship. Learn more about these potential issues at [The Diplomat’s US-China relations coverage](https://thediplomat.com/).
Conclusion
In conclusion, the US-China trade truce has provided a much-needed reprieve for Asian stock markets, offering a glimmer of hope for investors. However, continued vigilance is necessary, as the situation remains fluid. Keep an eye on these top Asian shares as they are poised to lead the way in 2025 amidst the evolving trade environment.
Read more about the US-China trade impact on global markets.
