Asian equity markets rallied sharply on Thursday, following a dramatic rebound on Wall Street after U.S. President Donald Trump announced a 90-day pause on newly imposed tariffs for multiple trading partners—excluding China. The unexpected move brought relief to global investors and reignited risk-on sentiment across the region.

The pause, announced just hours after the reciprocal tariffs took effect, was seen as a de-escalation of trade tensions that have rattled financial markets for weeks. Trump’s decision, however, did not include China, which now faces a higher 125% tariff rate. Analysts at Wedbush described the pause as a move that “pulls stocks and the market from the edge of the cliff,” and emphasized that negotiations are expected to intensify in the coming months.

Wall Street reacted swiftly. The Dow Jones Industrial Average soared 7.9%, posting its best day since 2020, while the Nasdaq surged 12%, marking its strongest single-day gain in 24 years. Asian bourses followed suit, with Japan’s Nikkei rising 8.1%, South Korea’s Kospi up 5.1%, and Australia’s ASX 200 gaining 4.6%. Meanwhile, Hong Kong’s Hang Seng climbed 3.1%, and Taiwan’s Taiex spiked 9.3%.

Bond markets reflected the risk-on tone. Yields on short-term government bonds in Japan, Australia, and New Zealand rose as demand eased. Two-year Japanese government bond yields rose 7.5 basis points to 0.680%, while yields in Australia and New Zealand climbed 9bps and 7bps, respectively.

Currency markets were mixed. The Japanese yen strengthened by 0.5% to 146.98 per dollar, while the Singapore dollar weakened slightly. The Australian dollar dipped 0.4% to 0.6127 amid domestic concerns and overall volatility.