U.S.-China Tariff Extension Soars Nikkei 225 Index to New Record
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On August 12, 2025, Asian markets witnessed another rally with renewed optimism after the extension of the U.S.-China tariff truce. This fresh extension, which sees the reimposition of tariffs deferred for another 90 days, has restored investor confidence in the region.
The Nikkei 225 index in Japan reached fresh all-time highs, climbing upward by more than 2%, as technology-heavy sectors led the charge. The Topix index also gained, reflecting confidence in corporate earnings and interest in the forecast for international trade. On the other hand, mainland China saw the CSI 300 rise by half a per cent, and Australia’s S&P/ASX 200 touched new highs after the Reserve Bank slashed interest rates to a fresh two-year low of 3.6%, lending strength to the local market.
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