JSE Smashes Records as Global Markets Surge on US-China Trade Truce

Stocks on the Johannesburg Stock Exchange (JSE) defied a bleak local unemployment picture to soar past the 93,000-point mark on Wednesday, buoyed by renewed optimism following a trade truce between the US and China.

Global sentiment received a major boost after the world’s two largest economies agreed to suspend and significantly reduce the trade tariffs that have battered international markets over the past year. The United States will cut import tariffs on Chinese goods from 145% to 30%, while China will lower its retaliatory tariffs from 125% to 10%—a significant de-escalation in the trade war.

US President Donald Trump described the talks as a “total reset,” and global markets responded in kind.

The JSE All Share Index rose 0.5% in early trade to 93,072 points—the highest ever recorded—before closing slightly lower at 92,487 points by the end of the trading day. This marks a strong recovery in investor confidence despite South Africa’s rising unemployment, which climbed to 32.9% in Q1 2025 from 31.9% in Q4 2024.

Global Optimism Trumps Local Woes

Annabel Bishop, Chief Economist at Investec, noted that the JSE is strongly influenced by global market sentiment due to its exposure to international listings.

“The recent rollback of tariffs by the US and China has eased concerns about global growth. This has lifted equities globally and benefited the JSE,” Bishop said.

Sappi led the local rally, rising 3.3% to R33.34 per share, followed by Datatec with a 3% gain and Truworths, which added 2.9%. Meanwhile, tech giant Naspers/Prosus also rose around 2.5%, fueled by a positive performance from its partner Tencent in Hong Kong.

Mike Gresty, fund manager at Anchor Capital, said:

“The weight of companies like Naspers and Prosus, and their exposure to Tencent, played a major role in today’s upward momentum.”

Domestic Challenges Remain

Despite the upbeat market, the local economy continues to struggle. The recent jump in unemployment has reignited debate around structural reforms and the pace of economic recovery.

Still, the JSE has managed a 4.4% gain over the past month and a 10.1% increase year-to-date—signs that global dynamics remain more powerful than local headwinds.

Sanisha Packirisamy, Chief Economist at Momentum Investments, said:

“The JSE remains highly geared to global outcomes. Most of its earnings come from offshore operations, making it more responsive to global easing than local conditions.”

As tariff tensions ease and market volatility subsides, investors are once again returning to equities, providing a much-needed breather for the South African bourse.

{Source: IOL}

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