Trump's remarks hinted at yet another round of tariff reversals.
Asian stocks edged slightly higher on Tuesday as some stability returned to markets, as US President Donald Trump floated a potential pause in auto-related, giving a boost to the sector after last week's rollercoaster ride. The American leader on Monday said he was considering a modification to the 25 per cent tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places.
"I'm looking at something to help some of the car companies with it," Trump told reporters in the Oval Office.
Tariffs on the auto sector could raise the costs of a car by thousands of dollars, and Trump said car companies "need a little bit of time because they're going to make 'em here."
The President's remarks hinted at yet another round of tariff reversals as Trump's onslaught of import duties has left the financial markets in turmoil, raising concerns about a possible recession.
The latest statement followed Trump's Friday move to exempt smartphones, computers and some other electronics from "reciprocal" US tariffs.
But his administration later stepped up probes into imports of semiconductors after Trump said on Sunday he would be announcing their tariff rate over the next week.
The US president's unorthodox approach to trade diplomacy continues to fuel uncertainty among investors, with speculation over new levies on high-end technology and pharmaceuticals dampening sentiment.
Asian Markets Show Signs Of Stability
Japanese stocks led gains in Asia while US Treasury bonds steadied, as investors continued to evaluate mixed messages on tariffs from the Trump administration after last week's historic selloff.
Tokyo and Seoul emerged among the best performers thanks to a boost to the auto sector after Trump said he was "very flexible" and "looking at something to help some of the car companies" hit by his 25 percent tariff on all imports.
Japan's Nikkei was up by 1 per cent, with shares of auto companies like Toyota and auto parts maker Denso among the top gainers on the index. But gains were limited amid uncertainty over America's trade policies as Trump's constant back-and-forth on tariffs continued to cast a cloud over markets and the global economic outlook.
Shares of Toyota and Mazda jumped five per cent and Nissan more than three per cent, while Seoul-listed Hyundai jumped more than four per cent.
China's CSI300 blue-chip index and Shanghai Composite Index eased more than 0.4 per cent each, while Hong Kong's Hang Seng Index reversed early gains to fall 0.16 per cent. Sydney, Singapore, Taipei, Manila and Jakarta also rose.
Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan was also up 0.3 per cent.
US futures swung between losses and gains to last trade lower after an overnight gain on Wall Street. Nasdaq futures and S&P 500 futures each plummeted 0.2 per cent.
In Europe, EUROSTOXX 50 futures was down 0.14 per cent, while FTSE futures were up 0.25 per cent.
US Treasuries, meanwhile, held onto overnight gains on Tuesday after a manic selloff last week that led to the largest weekly increase in borrowing costs in decades. Bond yields move inversely to prices.
The benchmark 10-year yield was steady at 4.3564 per cent, after having fallen nearly 13 basis points in the previous session. Similarly, the two-year yield was little changed at 3.8450 per cent after sliding 12 bps on Monday.
