Asian markets soared on Tuesday, February 4, 2025, as U.S. President Donald Trump announced a one-month delay in imposing tariffs on Mexico and Canada, easing trade tensions and fueling investor optimism. Major indices across the region recorded significant gains, with Japan’s Nikkei 225 rising 1.64% to 39,140.41 points and South Korea’s Kospi climbing 1.63% to 2,493.99 points. Hong Kong’s Hang Seng Index surged 2.10%, while Australia’s S&P/ASX 200 saw a modest 0.13% increase. The tariff pause followed discussions between President Trump, Mexican President Claudia Sheinbaum, and Canadian Prime Minister Justin Trudeau, focusing on border security and anti-drug trafficking measures. The positive market sentiment also strengthened the Indian rupee, with its one-month non-deliverable forward rate improving to 86.96-86.98 per U.S. dollar. Despite the temporary relief, analysts caution that trade policies will remain a key focus in Trump’s economic strategy, with investors closely monitoring future negotiations and potential market shifts.
