Asian shares climbed after President Donald Trump delayed tariffs on Mexico and Canada for a month, and said he’d hold further talks with China. Stocks in Australia and Japan gained, while contracts for Hong Kong stocks also looked up. US futures rose after the S&P 500 on Monday trimmed most of its slide that earlier approached 2%.

Shares of Japanese and South Korean car makers and their suppliers led declines in Asia on Monday, as exporters across the region were walloped by U.S. President Donald Trump's introduction of sweeping tariffs on Mexico,

Asia-Pacific markets rose Tuesday after Donald Trump paused tariffs on Mexico for a month, while Canada also said the U.S. president had put on hold proposed tariffs on its exports. Japan's benchmark Nikkei 225 started the day 1.64% higher, while the broader Topix index advanced 1.37%.

Among the biggest uncertainties is how a resilient US economy would handle the impact of a trade war, in case it materializes. That concern was evident in the bond market, where short-dated Treasury yields climbed as longer ones moved in the opposite direction.

Investors braced for a potential trade war after Trump imposed tariffs on goods from Canada, Mexico and China and pledged future tariffs on the European Union.

The euro zone's beleaguered manufacturing industry showed some signs of stabilisation last month but factory activity in Asia lost momentum as soft Chinese demand and threats of U.S. tariffs weighed on sentiment,

Asian stocks plunge as Trump’s tariffs spook markets Stock markets in Asia dropped on Monday after US tariffs on China, Canada and Mexico triggered fears of a hit to global growth. Japan's Nikkei index tumbled as much as 2.