The rebound comes after a wild day on Wall Street as President Donald Trump threatened to raise his double-digit tariffs after U.S. stock stock inventory.
Earlier on Tuesday, China’s Commerce Department said China would “fight” and take unspecified countermeasures to the United States safeguard its own interests after President Donald Trump threatened tariffs of 50% of China’s imports.
By the early hours of Tokyo, Nikkei 225 rose 6.5% to 33,148.52.
Hong Kong also recovered some failed ground, but failed to approach its 13.2% dive on Monday, making Hangers’ worst day since 1997 during the Asian financial crisis.
Hang Seng rose 1.7% to 20,163.97, while the Shanghai Composite Index jumped 0.8% to 3,121.72.
Kospi in South Korea rose 1.6% to 2,364.22, while the S&P/ASX 200 also rose 1.6% to 7,462.60.
New Zealand and Australia also have higher markets.
The S&P 500 fell 0.2% on Monday as Shell investors watched what Trump was going to do in his trade war. If other countries agree to the transaction, he can lower tariffs and avoid possible recessions. But if he sticks to long-term tariffs, the stock price could fall further.
The Dow Jones industrial average fell 349 points, or 0.9%, while the Nasdaq composite rose 0.1%.
The three indexes began to drop sharply, and the Dow Jones fell as much as 1,700 points after the losses in the rest of the world were worse. But this suddenly soared nearly 900 points in the early morning. Meanwhile, the S&P 500 rose from 4.7% to 3.4%, which would be the biggest growth in years.
The sudden rise comes after a false rumor that Trump considered his tariff suspension for 90 days, a statement that the White House quickly marked it as “fake news” on X. Rumors can shift trillions of dollars worth of investment, suggesting investors want to see signs that Trump may reduce tariffs.
Stocks quickly refused, and soon after Trump dug further and said last week the world’s second-largest economy retaliated against his own tariffs on U.S. products and he could raise tariffs on China.
Trump’s tariffs are an attack on globalization, which shapes today’s world economy and helps lower prices, but also leaves manufacturing jobs to other countries.
He said he wanted to bring factory work back to the United States, which could take years. Trump also said he wanted to narrow the trade deficit with other countries, but it is unclear how much room for negotiations there is between the U.S. or its trading partners.
The index rotates between Monday’s losses and gains, in part because investors still hope that negotiations will prevent the actual execution of all imports’ serious responsibilities.
After Trump announced tariffs on April 2 “Liberation Day” it seems that Monday was a painful investment in global finance.
Oil has also declined, fearing that the global economy, which is weakened by trade barriers, will burn less fuel. The benchmark U.S. crude oil barrel fell for the first time since 2021. In the early hours of Tuesday, $61.32 a barrel rose 62 cents.
International standard Brent Intrude is 70 cents per barrel to $64.91.
In currency trading, the US dollar rose from 147.71 yen to 147.32 yen. The euro fell from $1.0917 to $1.0983.
The price of gold rose by $38 to $3,011.60.
Bitcoin rose 2.1% to $80,081.17. On Monday, it sank below $79,000, down from its January record of more than $100,000.
