- Multiple Asian markets showed significant gains, with Japan's Nikkei 225 rising 1.15% and Hong Kong's Hang Seng index up 2%.
- Trump's decision to pause tariffs on Mexico and Canada also sparked positive market sentiment across the region.
Asian-Pacific markets experienced a robust rally on Tuesday, envigorated by President Trump's decision to temporarily pause tariffs on Mexico and Canada.
The move significantly boosted investor sentiment across multiple regional exchanges.
Japan's benchmark Nikkei 225 led the charge, trading 1.15% higher, while the broader Topix index advanced 1.06%.
South Korea showed similar enthusiasm, with the Kospi rising 1.52% and the small-cap Kosdaq gaining an impressive 3.09%.
Hong Kong's Hang Seng index traded up 2%, reflecting widespread market optimism.
Australia's S&P/ASX 200 saw a more modest 0.2% increase, while Indian stocks started the day higher, with the Nifty 50 up 0.62% and the BSE Sensex index rising 0.58%.
However, Chinese markets remained closed due to the Lunar New Year holiday, unable to participate in the regional market surge.
The positive momentum came despite overnight U.S. market fluctuations, where the Dow Jones Industrial Average recovered from earlier steep losses to close down 122.75 points.
The tariff pause appears to have provided a much-needed boost to market confidence, with investors interpreting the move as a potential de-escalation of trade tensions.
This development also suggests a more measured approach to international trade negotiations, offering a brief respite from recent economic uncertainties.
Edited By Annette George
