Asian and European stock markets rebounded on Tuesday, pausing a global selloff sparked by President Donald Trump’s “Liberation Day” global tariff war.
The mild recovery followed steep losses as investors weighed the risks of a renewed trade war.
Japan’s Nikkei 225 surged 6.03% to 33,012.58, its sharpest gain in over a year, while Australia’s S&P/ASX 200 rose 2.27%.
Hong Kong’s Hang Seng Index climbed 1.51%, recovering partially from Monday’s 13% plunge, its worst drop since 1997.
Mainland China’s CSI 300 also rose 1.71%.
South Korean and tech-heavy indexes posted modest gains.
Not all markets stabilized, with Indonesia’s Jakarta Composite sliding 7.87%, and Vietnam’s benchmark fell 6.48%.
Thailand’s index hit a four-year low.
In Europe, Britain’s FTSE 100 jumped 2.55%, Germany’s Dax rose 2.33%, and France’s Cac 40 gained 2.18%.
The rally mirrored Asian optimism after Japan and the US agreed to trade talks, easing immediate tensions.
Trump’s weekend rollout of 10% global tariffs and threats of 50% levies on China had rattled markets.
Wall Street’s S&P 500 fell for three straight days, though US futures signalled a slight rebound on Tuesday.
While markets steadied, analysts warned volatility could return. Trump’s “reciprocal” tariffs targeting allies take effect on April 9, with China pledging retaliation.
Investors await signs of compromise to prevent a repeat of 2018-2020 trade war disruptions.
For now, the breather offered relief.
The FTSE 250 and Italy’s FTSE MIB each rose over 3%, while US Dow futures climbed 476 points.
However, with trillions in market value erased over the past week, observers say lasting calm depends on de-escalation.
