Asian Shares Rebound On Hopes For Tariff Negotiations

(RTTNews) - Asian stocks advanced on Tuesday, with Japanese markets leading regional gains after U.S. Treasury Secretary Scott Bessent said Japan is likely to be prioritized in trade talks with the Trump administration.

Some calm returned to markets even as trade tensions escalated, with Beijing saying that the U.S. threat to escalate tariffs against China is a 'mistake on top of a mistake' and amounts to blackmail.

Treasuries yields and the dollar were steady in Asian trade while gold fell toward $3,000 per ounce. Oil edged up slightly after hitting a near four-year low in the previous session.

China's Shanghai Composite index rallied 1.58 percent to 3,145.55 as the government unleashed a series of measures to stabilize stocks.

The People's Bank of China set the so-called fixing at 7.2038 per dollar, the weakest since September 2023, to raise the appeal of exports.

Hong Kong's Hang Seng index jumped 1.51 percent to 20,127.68 as several Chinese state holding companies vowed to increase share investment and a slew of listed companies announced share buybacks.

Japanese markets logged strong gains as Trump assigned two members of his cabinet to kick off bilateral trade talks after a call with Prime Minister Shigeru Ishiba.

The Nikkei average surged 6.03 percent to 33,012.58 while the broader Topix index settled 6.26 percent higher at 2,432.02.

Nippon Steel soared 6 percent after Trump ordered a fresh review of the company's proposed takeover of U.S. Steel that was blocked by his predecessor Joe Biden.

Seoul stocks ended slightly lower as Trump signaled he could be open to some negotiations. The Kospi average ended up 0.26 percent at 2,334.23, giving up some early gains.

Australian markets logged their best daily gain for 2025 after a sharp sell-off over the past three session.

The benchmark S&P/ASX 200 rallied 2.27 percent to 7,510, led by gains in energy and technology stocks. Consumer discretionary stocks also rallied, with Bunnings owner Wesfarmers surging 3 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.98 percent to 11,891.44.

U.S. stocks ended mixed overnight after a volatile session.

The Dow shed 0.9 percent to extend declines for a third day running as President Trump threatened even higher tariffs against China and the White House dismissed speculation of some sort of tariff pause.

Trump threatened to impose an additional 50 percent tariff on Chinese goods unless the country withdraws its new 34 percent tariff on U.S. goods.

He also threatened to terminate negotiations with China and said that "tough but fair parameters are being set" for trade talks with other countries.

The S&P 500 dipped 0.2 percent while the tech-heavy Nasdaq Composite plunged over 5 percent before reversing course to end marginally higher.