Asian stocks were trading mixed on Tuesday, tracking a strong performance on Wall Street overnight.
Investors welcomed reports that US President Donald Trump may hold back some of the reciprocal tariffs set to take effect on April 2.
Despite the positive cues from the US, markets remained cautious, as Trump’s evolving stance on tariffs has left investors unsure about the final policy direction.
Japan’s Nikkei rebounds after four days of losses
The Japanese stock market surged on Tuesday, breaking a four-session losing streak, as investors reacted positively to Wall Street’s strength.
The Nikkei 225 climbed 0.73 percent to 37,881.70, after touching an early high of 38,115.65.
Market sentiment improved as gains in index heavyweights, automakers, and exporters outweighed weakness in financial and technology stocks.
SoftBank Group advanced over 2 percent, while Uniqlo operator Fast Retailing added 1.5 percent.
Among automakers, Toyota jumped nearly 2 percent, while Honda edged up 0.4 percent.
Hong Kong markets slide as investors take profits on EV stocks
Hong Kong’s Hang Seng Index fell 2.17 percent to 23,387.86, reversing early gains as investors took profits in the absence of strong catalysts.
The Hang Seng Tech Index also declined, dropping 2.6 percent, while Chinese stocks saw mixed trading, with the CSI 300 Index and Shanghai Composite Index falling marginally.
Losses in the EV sector weighed heavily on the market, with Xiaomi dropping 5.44 percent to HK$53.90 after the company raised US$5.5 billion in an upsized share sale to fund its electric vehicle expansion.
Geely Auto, Li Auto, and BYD also declined, with BYD falling 2 percent despite reporting a record 73 percent jump in fourth-quarter profit to 15 billion yuan (US$2.1 billion).
Other Asian markets
The Australian stock market continued its upward momentum for a fourth consecutive session, with the benchmark S&P/ASX 200 rising 0.51 percent to 7,977.30, after reaching an intraday high of 7,994.00.
Seoul shares opened higher on Tuesday, following gains on Wall Street. However, the index gave up the early gains later in the day.
The benchmark Kospi was down 0.34%, to 2,622.99.
Wall Street surges on Monday
US stocks posted strong gains on Monday, as optimism about a potential softening of Trump’s tariff plans boosted sentiment.
The Dow Jones Industrial Average jumped 1.42 percent to 42,583.32, the S&P 500 rose 1.76 percent to 5,767.57, and the Nasdaq surged 2.27 percent to 18,188.59.
The rally was driven by strength in the technology sector, with Tesla soaring nearly 12%.
Other notable gainers included Advanced Micro Devices, United Airlines Holdings, FedEx, Moderna, Ross Stores, Dollar Tree, Delta Airlines, and Microchip Technology, all of which rose between 4 to 7 percent.
The market’s bullish reaction came after reports suggested Trump may delay or limit some of the tariffs originally scheduled to take effect on April 2.
However, the president’s latest comments have left some uncertainty about whether the administration will fully commit to a scaled-back approach.
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