Most Asian stock indexes climbed on Tuesday after U.S. President Donald Trump left the door open for additional trade negotiations, offering a reprieve to investors rattled by recently imposed tariffs on several countries.
South Korea’s benchmark index led regional gains, rising more than 1.4%, while Japan’s Nikkei 225 edged up 0.2%. The MSCI Asia-Pacific regional index rose 0.1%, recovering from earlier swings between gains and losses.
Currencies responded positively to easing tensions. The South Korean won strengthened, and the U.S. dollar index slipped 0.2%, while the euro gained on reports that Washington had proposed a 10% tariff agreement with the European Union.
Meanwhile, Japan’s 30-year bond yields continued climbing, reflecting improved investor sentiment and reduced demand for haven assets. The Australian dollar spiked after the Reserve Bank of Australia (RBA) held interest rates steady, surprising markets that had priced in a potential cut.
Late Monday, Trump hinted at a possible extension of the August 1 tariff deadline, saying he remained open to further trade discussions, helping stocks recover from their April declines. Markets had been rattled earlier this year by sweeping tariff threats, but many investors expect the White House to follow its familiar pattern of rhetorical escalation followed by delay.
With tariff tensions now partially eased and central banks holding a cautious stance, analysts believe Asia’s equity markets may continue their recovery, barring any sharp policy reversals from Washington.
