U.S.-China Trade Deal Spurs Sharp Rises in World Markets; Dow Jones Recovers to Level Just Before Tariffs Announcement

By Yasuhiro Kobayashi and Azusa Nakanishi / Yomiuri Shimbun Correspondent

16:17 JST, May 13, 2025

The Dow Jones Industrial Average of the New York Stock Exchange surged 1,160 points Monday, recovering to the level just before U.S. President Donald Trump’s announcement that tariffs would be imposed.

An optimistic view that U.S.-China trade friction would ease clearly pushed stocks up. Washington and Beijing reached a deal in Geneva on Monday for a 90-day pause and for reciprocal tariffs to be reduced by 115 percentage points.

On Monday, the Dow Jones Industrial Average closed at 42,410.10 points, up 1,160.72 points from Friday’s finish. A joint statement on the U.S.-China meeting on tariff measures was well received, easing concerns about a slowdown in the U.S. economy. The index recovered to the level of the closing price on April 2 at 42,225.32 points, just before the U.S. government’s announcement of reciprocal tariffs on imports.

Shares in major U.S. online retailer Amazon.com Inc., which handles many imports from China, rose 8%. Apple Inc. also increased 6%. The tech-focused Nasdaq Composite Index closed at 18,708.34, up 779.42 points.

Major European stock markets also closed higher on Monday. Germany’s DAX rose 0.29% from Friday’s close, setting a new record closing high. In Paris, the CAC 40 increased 1.37%, while Britain’s FTSE 100 rose 0.59%. The markets saw buy orders swell for firms related to semiconductor, logistics and luxury brands that are expected to benefit from tariff reductions.

In the Tokyo market, buy orders increased from Tuesday morning. The Nikkei average of 225 selected stocks listed on the Prime section of the Tokyo Stock Exchange rose more than 800 points at one point, recovering to the 38,000 level for the first time in about a month and a half during trading hours. The Nikkei 225 closed up 539 points at 38,183.26.

The yen weakened temporarily to the 148 level against the dollar on the Tokyo foreign exchange market, leading to notable gains in automobile and other export-related stocks.

Market observers generally felt that U.S.-China tariff talks had made progress beyond their expectations. However, an analyst at a major securities firm said there was a sense of overheating in stock markets, stressing the importance of continually monitoring how U.S.-China negotiations develop.