Asian Markets Surge as Tariff Delay Boosts Sentiment

Asian stock markets rallied on Tuesday, reversing previous session losses despite negative signals from Wall Street. Investor sentiment improved following U.S. President Donald Trump’s decision to postpone planned tariffs on Mexico and Canada after negotiations with their leaders. The move alleviated concerns about potential inflation spikes that could have influenced the Federal Reserve’s interest rate policy. On Monday, Asian markets ended mostly lower.

Australian Market Rises on Strong Sector Gains

The Australian stock market rebounded, with the S&P/ASX 200 surpassing the 8,400 mark, driven by mining and technology stocks. The benchmark S&P/ASX 200 Index climbed 36.50 points or 0.44% to 8,415.90, after reaching an intraday high of 8,446.80. The All Ordinaries Index advanced 44.60 points or 0.52% to 8,673.00.

Among major miners, BHP Group rose nearly 1%, Mineral Resources gained 3%, while Rio Tinto and Fortescue Metals each advanced 2%. Oil stocks showed mixed movements, with Beach Energy rising over 1%, while Origin Energy, Woodside Energy, and Santos saw slight declines.

In the technology sector, Afterpay owner Block gained nearly 2%, Xero added over 1%, Zip surged 6%, and WiseTech Global climbed 2.5%. Appen saw the biggest rise, jumping 8% after releasing upbeat Q4 results.

Among banks, Commonwealth Bank, ANZ Banking, and National Australia Bank saw modest gains of 0.2-0.5%, while Westpac advanced nearly 1%.

Japanese Market Sees Strong Rebound

The Japanese stock market staged a sharp recovery, with the Nikkei 225 rising above 39,100, driven by technology stocks and major exporters. The Nikkei 225 Index ended the morning session at 39,140.41, up 1.61% or 620.32 points, reaching a high of 39,192.51.

Tech stocks surged, with Advantest gaining over 4%, Tokyo Electron up 2%, and Screen Holdings rising nearly 2%. SoftBank Group advanced over 1%, while Fast Retailing edged up 0.2%.

Automakers also performed well, with Honda up 2% and Toyota gaining nearly 3%. Banking stocks saw mixed action, with Mitsubishi UFJ Financial and Sumitomo Mitsui Financial gaining over 1%, while Mizuho Financial remained flat.

Several major companies posted significant gains, including Yamato Holdings (+9%), Sumitomo Chemical (+9%), Taiyo Yuden (+7%), and Mazda Motor (+5%). However, Mitsubishi Motors tumbled 12%, and Aozora Bank declined 4%.

Other Asian Markets

Elsewhere, Hong Kong surged 3.1%, and Singapore rose 1.8%, while New Zealand, South Korea, Malaysia, Taiwan, and Indonesia declined between 0.2-1.1%. China remains closed for the Lunar New Year.

Wall Street and European Market Recap

On Wall Street, U.S. stocks initially tumbled Monday but recovered throughout the session. The Nasdaq dropped 1.2% to 19,391.96, the S&P 500 fell 0.8% to 5,994.57, and the Dow Jones slipped 0.3% to 44,421.91.

European markets mirrored declines, with Germany’s DAX down 1.4%, France’s CAC 40 falling 1.2%, and the UK’s FTSE 100 losing 1%.

Crude Oil Rises Amid Tariff Concerns

Oil prices moved higher Monday, as Trump's tariff decision threatened disruptions in North America’s oil market. WTI crude futures for March rose 0.87% to $73.16 per barrel.

Overall, investor sentiment in Asia improved, with major markets rebounding as they assessed global trade developments and market stability.