Asian markets bounced back on Tuesday after U.S. President Donald Trump postponed tariffs on Canada and Mexico, easing immediate trade war concerns. While Chinese tariffs remained on schedule, investors welcomed the delay as a potential window for further negotiations. Japan’s Nikkei 225 rose 1.5%, South Korea’s KOSPI climbed 1.8%, and Australia’s S&P/ASX 200 gained 0.4%, reversing Monday’s losses.
Despite Chinese markets remaining closed for the Lunar New Year, Hong Kong’s Hang Seng index jumped 3%, driven by optimism over AI advancements and strong gains in tech stocks. Semiconductor SMIC surged 7.2%, while Xiaomi and Alibaba each rose 5%. While Trump’s 10% tariffs on China remain in place, markets anticipate a softer economic impact and potential local stimulus measures to cushion the blow.
