Asian stocks mostly rose on Tuesday, buoyed by growing hopes that U.S. President Donald Trump will expand tariff exemptions, especially for the tech and auto sectors. However, gains were tempered by ongoing trade uncertainty and warnings that any exemptions may be temporary.
Japan’s Nikkei 225, South Korea’s KOSPI, and Singapore’s Straits Times Index led regional advances, each gaining between 0.9% and 1.3%, driven by strong performances in technology and automobile stocks. The Taiwan Weighted Index also rose by around 1%. Wall Street’s back-to-back gains and upbeat U.S. bank earnings further supported market sentiment.
The rally in tech stocks followed White House indications that electronics could be excluded from Trump's 145% reciprocal tariffs on China—offering near-term relief for the sector. Still, Trump later clarified the electronics exemption was only temporary and hinted at new tariffs, dampening sentiment. Auto stocks also surged after Trump signaled he may scale back his proposed 25% auto tariffs to mitigate economic impact.
Major automakers with U.S. exposure rallied, with Japan’s Honda and Toyota jumping nearly 5%, and South Korea’s Hyundai gaining 3.7%. Broader optimism over potential tariff rollbacks supported markets across Asia. Australia’s ASX 200 rose 0.5% despite Collins Foods Ltd slumping over 4% on impairment concerns in its Netherlands operations.
Chinese markets remained volatile amid trade tensions. The Shanghai Composite and CSI 300 fell about 0.3%, while Hong Kong’s Hang Seng was flat. Beijing’s 125% retaliatory tariffs on U.S. goods weighed on sentiment, as did concerns over the country's economic outlook. Analysts have started trimming growth forecasts ahead of China’s Q1 GDP release on Wednesday, which will reflect the impact of recent stimulus efforts.
Investors remain cautious with low trading volumes expected before the Good Friday holiday.


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