By Ying Xian Wong

Southeast Asia stock indexes rose sharply in early trade as investors breathed a sigh of relief over President Trump's decision to pause reciprocal tariffs that had sparked a global markets into a meltdown.

Countries in the region, including Vietnam, Indonesia, and Malaysia, were hit with some of the highest tariffs, raising concern about their economies ability to handle the impact.

Malaysia's benchmark Kuala Lumpur Composite Index jumped 4.1%, while Indonesia's Jakarta Composite Index added 4.4%. In Vietnam, the benchmark VN index rose 6.6%--notching its best intraday gain since June 2011--and the Philippine Stock Exchange Index was 1.9% higher.

The 90-day reprieve from Trump provides room for potential trade deals. Most economists expect Southeast Asian countries to try to negotiate with Washington, rather than retaliating.

Vietnam's deputy prime minister, Ho Duc Phoc, met with U.S. Trade Representative Jamieson Greer on Wednesday, with both sides agreeing that they should start negotiations on a bilateral deal, according to the Vietnamese government website.

Malaysia's trade minister said the government welcomed the development, but that the surrounding uncertainty raises serious questions about the direction of global trade and its impact on Asean countries.

"Malaysia remains an open trading and investment partner to all nations, including China and the U.S., and is committed to finding mutually beneficial trade solutions with the U.S.", Malaysia's minister of investment, trade and industry, Tengku Zafrul Aziz, said Thursday morning on his Instagram account.

Officials from Indonesia have also signaled willingness to have a dialogue with the U.S.

Write to Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

April 09, 2025 23:25 ET (03:25 GMT)

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