HONG KONG – Asian shares climbed Tuesday after President Donald Trump said tariffs on Mexico and Canada would be delayed for a month.
Stock markets in Asia experienced gains on Tuesday. The Hang Seng Index in Hong Kong increased by 2.10% to reach 20,642.58. Japan’s main Nikkei 225 index also rose by 1.61% to 39,140.41, and South Korea’s Kospi went up by 1.63% to 2,493.99. Australia’s S&P/ASX 200 saw a slight increase of 0.13%, reaching 8,390.20.
The White House announced that President Trump would be holding discussions with Chinese President Xi Jinping, raising hopes of a potential agreement that could help prevent a more extensive trade dispute. Last week, Trump imposed 10% tariffs on Chinese products, which are set to be implemented on Tuesday.
Canada announced that it had reached a deal with the U.S. for a one-month reprieve only after U.S. markets had closed.
Analysts said that markets Tuesday were driven by the postponement of tariffs on countries like Canada and Mexico.
Market strategist Yeap Jun Rong from IG mentioned in a note that the significant drop in the US dollar, coupled with optimism regarding tariff negotiations, is likely to help markets sustain their positive momentum, unless there are any unforeseen negative developments in the US-China discussions.
Yeap said that the postponement of the tariffs provides immediate relief for risk sentiments and “underscores President Trump’s willingness to negotiate, potentially with tariff moves as bargaining chips rather than firm policy decisions.”
The S&P 500 fell 0.8% Monday, while the Dow Jones Industrial Average lost 122 points, or 0.3%, and the Nasdaq composite sank 1.2%. U.S. stocks had pared losses after Mexico said it had a monthlong reprieve from tariffs imposed by Trump.
In energy trading, benchmark U.S. crude declined $0.77 to $72.39 a barrel. Brent crude, the international standard, lost 36 cents to $75.60 a barrel.
In currency trading, the U.S. dollar edged up 155.13 Japanese yen from 154.75. The euro cost $1.0317, down from $1.0345.
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