Asian Stocks Rebound as Markets Brace for U.S. Tariffs and RBA Holds Rates

Asian stock markets rebounded on Tuesday, mirroring overnight gains on Wall Street, as investors turned cautiously optimistic ahead of looming U.S. trade tariffs. U.S. indices ended higher on Monday, though futures dipped slightly during early Asian trading amid concerns over reciprocal tariffs set to be announced on April 2.

President Trump is expected to unveil a sweeping tariff policy at 15:00 ET on Tuesday, dubbed “Liberation Day,” which includes a 25% tariff on auto imports starting April 3. Markets are on edge over potential disruptions to global trade and a slowdown in U.S. demand—the world’s economic engine.

Meanwhile, the Reserve Bank of Australia (RBA) held its benchmark interest rate steady at 4.10%, aligning with market expectations. This follows a 25 basis point rate cut in February, the first since 2020. The RBA’s cautious stance reflects a complex economic backdrop, including upcoming federal elections and global trade uncertainties. Australia’s S&P/ASX 200 gained 0.8% before the RBA decision and held steady afterward. Retail sales data for February came in weaker than forecast, indicating softer household spending.

Across Asia, markets rebounded sharply after recent losses, helped by short-covering and bargain hunting. South Korea’s KOSPI led with a 1.9% surge, despite export growth in March falling short of estimates. Japan’s Nikkei 225 and TOPIX gained 0.7% and 0.8%, respectively. China’s Shanghai Composite rose 0.6%, while the Hang Seng rallied 1.3%, driven by upbeat manufacturing data. The Caixin PMI hit a four-month high at 51.2, surpassing forecasts. Indonesia’s and Thailand’s benchmarks also saw gains, while India’s Nifty 50 futures were flat.

Investors remain cautious ahead of U.S. tariff implementation, keeping global markets on alert.