Asian shares gain after Wall Street's rally, but hopes are tempered by trade war uncertainties

Asian shares precocious Tuesday aft China and the United States announced a 90-day truce successful their trade war, but the gains were tempered by uncertainties implicit the longer term, arsenic analysts warned President Donald Trump’s policies could inactive rapidly change.

The United States and China said successful a joint statement that it volition chopped tariffs connected Chinese goods to 30% from arsenic precocious arsenic 145%. China, meanwhile, said its tariffs connected U.S. goods volition autumn to 10% from 125%. The 90-day intermission gives clip for much talks pursuing the weekend’s negotiations successful Geneva, Switzerland, which the U.S. broadside said yielded “ substantial progress.”

The result surpassed astir expectations, reassuring investors," said Stephen Innes of SPI Asset Management.

“Make nary mistake, this was highly stage-managed diplomacy. But the optics are bully and the implications real. It signals that adjacent this medication recognizes the economical resistance of unrelenting tariffs,” helium said successful a commentary.

Tokyo's Nikkei 225 jumped 1.8% to 38,326.37, portion the Kospi successful South Korea gained 0.2% to 2,612.30.

Hong Kong's Hang Seng, which gained 3% a time earlier aft Chinese and U.S. officials announced the statement to intermission tariffs and trim them, fell 0.7% to 23,374.06.

The Shanghai Composite scale edged 0.2% higher to 3,374.93. Taiwan's Taiex jumped 1.9%.

Australia's S&P/ASX 200 climbed 0.6% to 8,281.40.

On Monday, the world’s 2 largest economies agreed to instrumentality down temporarily astir of their tariffs against each other.

The S&P 500 changeable up 3.3% to propulsion backmost wrong 5% of its all-time precocious acceptable successful February. It’s been roaring higher since falling nearly 20% beneath the people past period connected hopes that President Donald Trump volition little his tariffs aft reaching trade deals with different countries.

Closing astatine 5,844.19, the scale astatine the bosom of galore 401(k) accounts is backmost supra wherever it was connected April 2, Trump’s “Liberation Day,” erstwhile helium announced stiff worldwide tariffs that ignited worries astir a perchance self-inflicted recession.

The Dow Jones Industrial Average jumped 1,160 points, oregon 2.8%, to 42,410.10. The Nasdaq composite surged 4.3% to 18,708.34.

A planetary system little burdened by tariffs volition apt pain much fuel, truthful the statement to standard backmost tariffs by much than what galore investors expected besides boosted lipid prices. But aboriginal Tuesday, they fell back. U.S. benchmark crude lipid mislaid 6 cents to $61.89 per barrel. Brent crude, the planetary standard, shed 8 cents to $64.88 per barrel.

The worth of the U.S. dollar strengthened against everything from the euro to the Japanese yen to the Swiss franc. And Treasury yields jumped connected expectations that the Federal Reserve won’t person to chopped involvement rates arsenic profoundly this twelvemonth arsenic earlier expected.

Early Tuesday, the dollar was trading astatine 147.98 Japanese yen, down from 148.47 yen. But it gained against the euro, climbing to $1.1101 from $1.088.

The determination announced Monday could adhd 0.4 percent points to the U.S. economy’s maturation this year, according to Jonathan Pingle, U.S. main economist astatine UBS. That’s a important chunk, and each spot counts erstwhile the U.S. system shrank astatine a 0.3% yearly complaint successful the archetypal 3 months of the year.

Big challenges stay successful the negotiations betwixt Beijing and Washington.

The U.S.-China intermission followed a woody the United States announced past week with the United Kingdom that volition bring down tariffs connected galore U.K. imports to 10% but volition inactive necessitate weeks to finalize each the details.

But galore Asian countries person yet to negociate tariff-alleviating deals of their own.

Economic reports scheduled for aboriginal this week, including connected ostentation and sentiment among U.S. consumers, could amusement however overmuch harm to the system has been inflicted by the uncertainty implicit tariffs.

Many retailers roseate due to the fact that overmuch of what they merchantability comes from China and elsewhere successful Asia. Best Buy jumped 6.6%, and Amazon rallied 8.1%.

Stocks of smaller U.S. companies rallied connected Monday. Their livelihoods beryllium much connected the spot of the U.S. system than their bigger and much insulated rivals, and the smaller stocks successful the Russell 2000 scale jumped 3.4%.

Apparel companies that root overmuch of their supplies from China besides gained. Lululemon leaped 8.7% and Nike roseate 7.3%.

Travel companies jumped connected hopes that little tariffs would promote much customers to consciousness comfy capable to walk connected trips. Carnival roseate 9.6%, and Delta Air Lines climbed 5.8%.

__

AP Business writers Stan Choe and Matt Ott contributed.

Copyright 2025 The Associated Press. All rights reserved. This worldly whitethorn not beryllium published, broadcast, rewritten oregon redistributed without permission.