Asian stocks edge up while dollar steady after Trump’s delay of higher tariffs

Asian stocks rose Tuesday after President Donald Trump pushed back a scheduled increase in tariffs on Chinese goods by roughly three months, easing near-term trade pressure but keeping investors focused on what comes next.

Japan outperformed as the Nikkei 225 jumped 2.6% to 42,942.14, a new record. Blue-chip stocks were firm, Toyota Motor Corp. rose 3.3%, while others also advanced. In contrast, Hong Kong’s Hang Seng eased almost 0.2% to 24,865.07. On the mainland, the Shanghai Composite inched 0.3% higher to 3,658.62.

Gains followed a Monday executive order from Trump that temporarily halted escalation between the world’s two biggest economies, creating a window for broader talks. Without the delay, duties on Chinese imports could have risen from an already steep 30%. Beijing indicated it would mirror Washington’s extension by postponing its own tariff increases on U.S. goods.

The extra time offers negotiators space to pursue a deal with Trump, yet businesses still face the planning uncertainty that has marked the conflict’s latest phase. “The extension isn’t about goodwill; it’s about keeping oxygen in the room for deals that matter,” Stephen Innes of SPI Asset Management said in a commentary.

Across Asia-Pacific, Australia’s S&P/ASX 200 was essentially flat, up less than 0.1% at 8,852.80, while South Korea’s Kospi rose 0.6% to 3,227.10.

US stocks dipped on Monday

In the U.S., stocks dipped Monday as investors awaited new inflation figures. The S&P 500 fell 0.3% to 6,373.45 after lingering near its record from two weeks earlier. The Dow declined 0.5% to 43,975.09, and the Nasdaq lost 0.3% to 21,385.40.

The week’s marquee U.S. release arrives Tuesday with July’s consumer price index. Economists expect a 2.8% year-over-year rise in prices, above June’s 2.7%.

Currencies were calm ahead of the data. The dollar retained recent strength as traders weighed how the CPI could shape expectations for future Federal Reserve rate cuts. The Australian dollar was little moved in the run-up to the Reserve Bank of Australia’s decision.

Dollar is holding gains

The dollar index, a gauge versus six currencies including the euro and yen, was at 98.497 at 0046 GMT after a two-session gain of 0.5%. Earlier, the greenback had retreated as markets responded to Trump’s dovish-leaning pick for a Fed governor and to like-minded names for the chair, nudging bets toward more easing.

On Tuesday, the dollar ticked up 0.1% to ¥148.28, while the euro held near $1.1615. Traders largely took the tariff move in stride, having broadly expected a three-month extension.

As Washington and Beijing seek to avert triple-digit import duties, a U.S. official told Reuters that chip makers Nvidia and AMD agreed to allocate 15% of China-related sales revenue to the U.S. government in exchange for export licenses for certain semiconductors. The report underscored how trade and tech policy remain intertwined despite the truce.

For the moment, the delay in higher tariffs afforded equities some relief, even as focus turned to the inflation print and to whether talks can convert the pause into something more durable.