On April 18, 2025, Asian stock markets exhibited mixed reactions to recent U.S. trade policies, particularly the escalation of tariffs under President Donald Trump. Japan's Nikkei 225 index rose by 1.03%, closing at 34,730.28, marking its best weekly gain in three months. Conversely, China's Shanghai Composite index experienced a slight decline of 0.1%.

The Nikkei's uptick was driven by investor optimism over ongoing trade negotiations between the U.S. and Japan. Discussions in Washington between President Trump's administration and Japanese Economy Minister Ryosei Akazawa were viewed positively. President Trump highlighted significant progress on social media, stating, "Big Progress!" This sentiment was echoed by James Brady, vice president at advisory firm Teneo, who noted, "The mood seemed overall quite positive, underscored by Trump's social media post featuring a smiling photo of him with Akazawa in the Oval Office."

In contrast, the Shanghai Composite's slight decline reflects investor caution amid escalating U.S.-China trade tensions. The People's Bank of China is expected to maintain its benchmark loan prime rates steady, despite increasing expectations for monetary stimulus. Analysts anticipate potential policy adjustments if trade tensions further destabilize markets.

These developments underscore the varied responses of Asian markets to the evolving landscape of U.S. trade policies and their broader economic implications.