HONG KONG – Asian shares climbed Tuesday after President Donald Trump said tariffs on Mexico and Canada would be delayed for a month.
Stocks across Asia were up Tuesday. The Hang Seng Index in Hong Kong grew 2.10% to 20,642.58. Japan’s benchmark Nikkei 225 was up 1.61% to 39,140.41, while South Korea’s Kospi grew 1.63% to 2,493.99. Australia’s S&P/ASX 200 rose 0.13% to 8,390.20.
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The White House also said Trump would speak with Chinese President Xi Jinping, sparking hopes that a deal could be reached that could avert a broader trade war. Trump last week imposed 10% tariffs on Chinese goods that is expected to go into effect 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.
“The sharp pullback in the US dollar, along with tariff relief hopes, are likely to see markets retain their gains, barring any unexpected souring in US-China talks ahead,” said Yeap Jun Rong, market strategist at IG in a note.
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.