Asia-Pacific markets rise on Tuesday as concerns about a potential trade war eased after U.S. President Donald Trump delayed tariffs on Canada and Mexico for a month. Late on Monday, President Donald Trump agreed to “immediately pause” tariffs on Mexico and Canada for a month following successful negotiations with their respective leaders. Markets are also growing more optimistic that the U.S. and China could reach a deal to avert the 10% tariffs on Chinese imports set to take effect later today. Japan ( NKY:IND ) rose 0.76% to around 39,150, while the broader Topix Index rose 1.4% to 2,757 on Tuesday, recouping some of the losses from the previous session. The Japanese yen fell past 155 per dollar on Tuesday, struggling to regain momentum as the suspension of U.S. tariffs on Mexico and Canada reduced demand for the safe-haven currency. Investors are also looking ahead to Wednesday’s release of Japan’s latest wage figures, which could influence the outlook for Bank of Japan monetary policy. China ( SHCOMP ) flat, the offshore yuan held steady around 7.30 per dollar, after recovering from a record low overnight, driven by optimism about a possible trade deal to avoid 10% tariffs on Chinese goods. US President Donald Trump is reportedly set to speak with his Chinese counterpart, Xi Jinping, as soon as this week, as the two largest economies are working toward a deal to avoid broader trade tensions, according to the White House. Investors are now eyeing upcoming additional PMI data and inflation figures next week. Hong Kong ( HSI ) rose 1.71% to a near 8-week high of 20,674 during the Tuesday morning session, following a muted close the prior day. India ( SENSEX ) rose 0.50% to 77,684, while the Nifty 50 was above 23,500 in Tuesday morning trade, mainly supported by gains in metals, oil & gas, banking, and tech sectors. The RBI interest rate decision, which will be announced later this week, also lifted sentiment, with the market expecting the central bank to cut rates by 25 bps amid a slowdown in GDP growth. Australia ( AS51 ) fell 0.06% to rise above 8,430 on Tuesday, recovering some losses from the previous session. The Australian dollar stabilized above $0.62 on Tuesday, recovering from multi-year lows reached in the previous session. In Australia, investors are awaiting December trade figures, due on Thursday, to assess the strength of the country’s export-driven economy. In the U.S., on Monday, all three major indexes ended in red , markets pared some losses after Trump said the US would delay tariffs on Mexican imports by a month following a call with Mexico’s President. U.S. stock futures climbed on Tuesday after President Donald Trump postponed planned tariffs on goods from Canada, echoing the reprieve given to Mexico just hours earlier: Dow -0.30% ; S&P 500 -0.36% ; Nasdaq -0.51% . Investors are now focused on upcoming earnings reports from major companies like Alphabet, AMD, and PayPal on Tuesday. Additionally, Friday’s nonfarm payrolls report is expected to provide more insight into the state of the labor market. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: U.S. will delay Canada tariffs as countries work on beefing up border security U.S. to delay tariffs on Mexico after Mexico agrees to deploy 10,000 border troops Australia's retail sales fall by 0.1% M/M in December, marks first decline in nine months China’s manufacturing PMI drops to 50.1 in January, missing expectations U.S. futures sharply lower after Trump hits Canada, Mexico and China with tariffs Australia's Q4 producer inflation rise 0.8% Q/Q, misses estimates
