While global stock markets tumbled on Thursday following US President Donald Trump’s announcement of sweeping tariffs on imports, the Nepal Stock Exchange (NEPSE) defied the trend with a slight uptick.
The NEPSE Index edged up 0.12%, or 3.35 points, to close at 2,703.39 on the last trading day of the week. This followed a notable 0.94% increase the previous trading day.
In a Rose Garden announcement, President Trump declared elevated tariff rates on dozens of nations with significant trade surpluses with the US. Additionally, he imposed a baseline 10% tax on imports from all countries, citing an economic emergency, according to the Associated Press (AP). While Trump claimed the move would generate hundreds of billions in revenue and restore fairness to global trade, economists have cautioned that it could heighten the risk of a recession.
European markets reacted sharply, with Germany’s DAX falling 1.7% to 21,998.48, France’s CAC 40 losing 1.8% to 7,716.66, and Britain’s FTSE 100 shedding 1.2% to 8,506.44, reported AP. Trump has imposed a 20% tariff on the European Union.
In Asia, Tokyo’s Nikkei 225 briefly plunged 4% before closing 2.8% lower at 34,735.93. Automakers and banks suffered significant losses, with Mitsubishi UFJ Financial Group tumbling 7.2% and Mizuho Financial Group declining 8%. Sony Corp. dropped 4.8%, while Toyota Motor Corp. fell 5.2%. South Korea’s Kospi, impacted by a 25% tariff, declined 1.1% to 2,486.70.
Hong Kong’s Hang Seng lost 1.7% to 22,813.22, the Shanghai Composite Index edged down 0.2% to 3,342.01, and Australia’s S&P/ASX 200 declined 0.9% to 7,859.70. Thailand’s SET Index dropped 1.1% after the US imposed a 36% tariff on Thai exports.
Indian stocks showed relative resilience despite the tariff impact. Reuters reported that the Nifty 50 fell 0.35% to 23,250.1, while the BSE Sensex lost 0.42% to 76,295.36. Analysts attributed India’s better performance to its relatively lower reciprocal tariffs compared to China, Vietnam, and Thailand, which could provide a competitive edge. Trump’s administration imposed a 26% tariff on Indian imports, though an annexe cited by New Delhi put the duties at 27%, while China, Vietnam, and Thailand faced tariffs of 34%, 46%, and 36%, respectively.
With an already existing 20% tariff, the total tariff rate to China has reached 54%.
In South Asia, Sri Lanka faced the steepest tariff at 44%, followed by Bangladesh at 37% and Pakistan at 29%. Nepal, Bhutan, Maldives, and Afghanistan were each subjected to a 10% tariff.
The 10% rate would be collected starting Saturday and the higher rates would be collected beginning April 9.
Despite global turmoil, NEPSE saw increased trading activity, with daily turnover exceeding Rs 7.84 billion, up from Rs 5.44 billion the previous day. The total market capitalization at the close of Thursday’s session stood at Rs 4.49 trillion.
More than 15.5 million shares changed hands across 69,089 transactions. While 93 companies registered gains, 151 saw declines. All major indices ended in positive territory, with the Sensitive Index advancing 0.51%, the Float Index rising 0.29%, and the Sensitive Float Index gaining 0.65%.
Green Ventures Limited (GVL) led the gainers, surging 9.99%, while Upakar Laghubitta Bittiya Sanstha Limited (ULBSL) recorded the steepest loss, falling 7.85%.
Himalayan Reinsurance Limited (HRL) saw the highest turnover, followed by Nepal Reinsurance Company Limited (NRIC) and NRN Infrastructure and Development Limited (NRN).
Among the 13 sectoral indices, only four ended higher. The Others Index posted the strongest gain at 1.45%, while the Trading Index suffered the sharpest decline, falling 1.66%.
(With Inputs from AP and Reuters)
