LOS ANGELES (Reuters) -U.S. bookings for container transport from China to the United States spiked almost 300% in the wake of the United States and China pausing punishing tit-for-tat tariffs, container-tracking software provider Vizion said on Wednesday.

The average bookings for the seven days ended Wednesday soared 277% to 21,530 20-foot equivalent units from 5,709 TEUs for the average for the seven days that ended on May 5, said Ben Tracy, the company’s vice president of strategic business development said.

U.S. importers slammed the brakes on shipments after April 2, when Trump announced plans to slap 145% tariffs on goods made in China.

That trade restarted after the United States and China on Monday announced a 90-day thaw in their bruising trade war.

The United States said it would reduce tariffs it imposed on Chinese imports in April to 30% from 145%, while China reduced duties on U.S. imports to 10% from 125%.

"We are definitely starting to see the bookings return now that this temporary pause is in effect," Tracy said.

German container shipping firm Hapag-Lloyd earlier on Wednesday said its bookings were up 50% for U.S.-China traffic week on week in the first few days of this week.

When asked about Washington and Beijing’s tariff truce, CEO Rolf Habben Jansen told Reuters: "I expect that there will be additional volume between China and the U.S. That is what we have already seen in the last few days."

The S&P 500 eked out a gain Wednesday, led by tech, a day after turning positive for the year amid ongoing optimism surrounding the U.S.-China trade deal.

At 4:00 p.m. EDT (20:00 GMT), the Dow Jones Industrial Average fell 89 points, or 0.1%, the S&P 500 index rose 0.2%, and the NASDAQ Composite added 0.7%.

Markets await updates on trade deals, but tech continues shine

The breather in the recent rally comes as investors continue to pour over any further details on the trade policy front. National Economic Council Director Kevin Hassett said President Trump could announced a major trade deal when he returns from his Middle East tour. Trump has already secured a $600 billion commitment from Saudi Arabia to invest in the U.S.

Additionally, Reuters reported that the Trump administration will slash the so-called "de minimis" tariff on low-value imported packages from China to as low as 30%.

On Monday, the White House unveiled an executive order bringing down the duty on these direct-to-consumer packaged items valued at $800 or less to 54% from 120%, adding to optimism spurred on by an earlier trade truce between Washington and Beijing. A flat fee of $100 remained in effect, although a planned increase to $200 in June was scrapped.

Tech stocks, however, remained in ascendency, led by Alphabet Inc Class A (NASDAQ:GOOGL), Advanced Micro Devices Inc (NASDAQ:AMD), and NVIDIA Corporation (NASDAQ:NVDA), with the latter two supported by ongoing signs of chip demand after notching chip deals with Saudi-based Humain, 

Elsewhere in chips, Super Micro Computer Inc (NASDAQ:SMCI) extended its rallied just days after Raymond James initiated coverage on the stock with an outperform rating, citing long-term AI-led server demand. The company also announced a multi-year, $20 billion partnership with Saudi data center firm DataVolt.

Fed speak continues

The U.S. economic data slate is largely empty Wednesday, but a number of Fed officials delivered remarks touting concerns about a tariff-related drag on the economy. 

Fed Vice Chair Philip Jefferson said on Wednesday the outlook on inflation slowing toward the 2% target had been clouded by the impact of tariffs, citing the risk of new import taxes driving inflation higher. 

Remarks from Fed officials will be closely watched at a time when bets on the Fed cutting rates three to four times this year remain intact.

“So while the de-escalation of trade tensions is helpful for growth, it also makes it more likely that inflation will be less of an issue for the Federal Reserve and the scope for Fed rate cuts remains,” ING analysts said in a note.

ING still expects the Fed to wait until September to cut rates, but said a cut of 25 basis points seems more likely now than the previously anticipated 50 bps.

Cisco earnings in spotlight

Highlighting the earnings calendar on Wednesday will be quarterly results from Cisco Systems (NASDAQ:CSCO), with analysts curious to see how the technology equipment firm views the impact from U.S. duties on its finances.Elsewhere in chips, Super Micro Computer Inc (NASDAQ:SMCI) extended its rallied just days after Raymond James initiated coverage on the stock with an outperform rating, citing long-term AI-led server demand. The company also announced a multi-year, $20 billion partnership with Saudi data center firm DataVolt.

Fed speak continues

The U.S. economic data slate is largely empty Wednesday, but a number of Fed officials delivered remarks touting concerns about a tariff-related drag on the economy. 

Fed Vice Chair Philip Jefferson said on Wednesday the outlook on inflation slowing toward the 2% target had been clouded by the impact of tariffs, citing the risk of new import taxes driving inflation higher. 

Remarks from Fed officials will be closely watched at a time when bets on the Fed cutting rates three to four times this year remain intact.

“So while the de-escalation of trade tensions is helpful for growth, it also makes it more likely that inflation will be less of an issue for the Federal Reserve and the scope for Fed rate cuts remains,” ING analysts said in a note.

ING still expects the Fed to wait until September to cut rates, but said a cut of 25 basis points seems more likely now than the previously anticipated 50 bps.

Cisco earnings in spotlight

Highlighting the earnings calendar on Wednesday will be quarterly results from Cisco Systems (NASDAQ:CSCO), with analysts curious to see how the technology equipment firm views the impact from U.S. duties on its finances.

Elsewhere, American Eagle Outfitters (NYSE:AEO) stock slumped after the clothing retailer withdrew its outlook for the year after posting disappointing preliminary first-quarter results.

Ford (NYSE:F) stock fell with the auto giant having to recall over 273,000 vehicles in the United States as a loss of brake function may increase the risk of a crash.

Peter Nurse, Ayushman Ojha contributed to this article.

By Maggie Fick

LONDON (Reuters) -European governments are examining whether U.S. President Donald Trump can force them to pay more for prescription medicines, after he issued an executive order to lower U.S. drug prices, roiling the global pharmaceutical industry.

On Monday, Trump took aim at governments paying a fraction of what Americans have to shell out for their medicines, and directed the use of trade policy to force other nations to pay more for prescription drugs.

The Trump administration wants to reduce the gap between U.S. drug prices and those in other developed countries such as many in Europe, where prescription drugs cost, on average, one-third what they do in the United States.

Denmark’s industry and business minister Morten Bodskov plans to meet with drugmakers based in his country to discuss the order. He did not give details about the meeting.

"The uncertainty (caused) by the U.S. is bad for the world," he told Reuters. "Danish pharmaceutical companies are among the best in the world and are of great importance to Denmark. The message from Trump does not change that."

The country of six million has benefited from the expansion of Novo Nordisk (NYSE:NVO) and the outsize demand for its diabetes drug Ozempic and for Wegovy, one of the powerful new weight-loss drugs singled out by Trump in his push to lower prices.

Novo, Europe’s third-largest listed company worth 265 billion euros ($295.74 billion), said it looked forward to the meeting.

In the U.S., drug prices are shaped by complex negotiations involving pharmacy benefit managers that act as middlemen between drugmakers and employer clients and health insurers and have been criticised for inflating costs. In Europe, countries generally have public health systems that negotiate directly with manufacturers and keep costs down.

The European Commission, the EU executive, will assess the impact of Trump’s order on European companies, a spokesperson told reporters on Tuesday.

"We know the pharmaceutical industry faces challenges both in the U.S. and the EU," the spokesperson said, noting Commission President Ursula von der Leyen had met with executives last month to address concerns about the threat of U.S. tariffs on medicines.

Trump’s effort during his first term -- through a more limited executive order focused on certain drugs covered by the government’s Medicare program -- was blocked by a court.

Trump said if drugmakers do not cut prices they could be hit with tariffs. His administration launched a probe last month into pharmaceutical imports as a potential precursor to placing levies on medicines on national security grounds.

"The United States will no longer subsidize the healthcare of foreign countries, which is what we were doing," Trump said on Monday. "I’m not knocking the drug companies. I’m really more knocking the countries than the drug companies."

Although Americans pay significantly more for medicines, they have access to a greater number of treatments. Some 55% more cancer drugs were launched in the U.S. than in the UK over the past three decades, according to a 2024 study in the British Medical Journal.

An AstraZeneca (NASDAQ:AZN) spokesperson said the company supports fairer global sharing of pharmaceutical costs, but that changes must avoid "disrupting patient care, undermining U.S. biotech leadership, or stifling innovation."

CONFIDENTIAL PRICES

Seven drug pricing experts and lawyers told Reuters it is unclear how the administration could legally demand confidential contract details between drugmakers and governments. That information would be needed as Trump’s order calls for giving drugmakers price targets within a month.

Strict cost containment measures and reimbursement policies prevent drugmakers from charging Britain’s financially strapped state-funded National Health Service more for new drugs, said Daniel Howdon, a health economist at the University of Leeds.

"Unless there is some sort of overhaul of UK law or policy, Trump’s order will not be able to achieve higher prices," he said.

A spokesperson for Germany’s health ministry told Reuters it was not possible to predict how the U.S. order may be implemented.

Germany has a "clearly defined framework for price negotiations on medicines between statutory health insurance and the pharmaceutical industry," the spokesperson said.

The call for developed countries to pay more for drugs so the U.S. can pay less comes as worries grow that uncertainty caused by Trump’s whiplash trade war will dampen the 27-nation bloc’s already-weak economy.

Even with the threat of tariffs, governments may be unable and unwilling to spend more on medicines, particularly as populations age and healthcare budgets tighten, UBS analyst Trung Huynh said.

The UK government does not publish the prices it pays for NHS drugs, but a source at the UK’s Department of Health and Social Care said prices for some treatments are about a quarter of those paid by the U.S.

The DHSC did not respond to a request for comment.

Still, a source at a European drugmaker told Reuters the Trump administration could still exert pressure to try to force governments to alter their longstanding pricing practices embedded in national health systems.

"I read this as him showing pharma all of the negotiating tools he has at his disposal," said Anna Kaltenboeck, a health economist at Verdant Research, "and giving them some credible threat based on his willingness to impose tariffs so far."

($1 = 0.8961 euros)

BANGKOK (Reuters) - Thailand’s worsening economic outlook as U.S. tariffs intensified global trade tensions triggered a cut in interest rates last month, minutes of the Bank of Thailand’s April 30 monetary policy meeting showed on Wednesday.

At the meeting, the BOT’s monetary policy committee voted 5-2 to cut the one-day repurchase rate by 25 basis points to 1.75%, the lowest level in two years, and lowered its growth and inflation forecasts.

"Most members deemed it appropriate to cut the policy rate at this meeting to be consistent with the worsening economic outlook, address heightened downside risks, and align financial conditions with the evolving economic and inflation outlook," the minutes said.

The BOT had also cut interest rates at its previous meeting in February. The central bank’s next rate review is on June 25.

In the minutes, the central bank said the economy was likely to grow at a slower pace than previously anticipated, with heightened risks stemming from global trade tensions that had intensified more than expected. The committee saw the need for monetary policy to be outlook-dependent and voiced worries about the quality of retail loans, particularly housing loans, the minutes showed.

The BOT said foreign tourist arrivals might not return to the pre-pandemic level of 40 million in the next one to two years, and trade uncertainty would hit private investment.The committee said the Thai baht had been volatile and was not aligned with economic fundamentals, which could undermine the competitiveness and adaptability of businesses.

Headline inflation was projected to remain below the target range of 1% to 3% in 2025 and 2026, and financial conditions would remain tight, the minutes said.

Asian stock markets were mixed on Wednesday, with Hong Kong and South Korea climbing, mirroring overnight tech gains on Wall Street, while Japan slipped amid a stronger yen.

The rally induced by a temporary U.S.-China tariff deal appeared to be losing steam, as investors focused on further trade negotiations.

U.S. stock index futures were largely muted in Asian trading on Wednesday after the S&P 500 and tech-heavy NASDAQ Composite posted gains in regular trading on Monday.

Data on Tuesday showed that the U.S. consumer price index inflation came in softer than estimates, alleviating some fears about the impact of U.S. trade tariffs.

Tech gains were driven by NVIDIA (NASDAQ:NVDA), after the company announced a major chip deal for the sale of 18,000 AI chips to a Saudi Arabian company, Humain.

HK, S. Korea jump 1.5%; rest muted as trade optimism rally loses steam

Most Asian stock markets saw sharp gains on Tuesday as investors cheered a sharp de-escalation in the U.S.-China trade war.

The U.S. and China said in a joint statement on Monday that they have agreed to temporarily lower soaring tariffs placed on each other.

The U.S. will reduce its tariff on Beijing from 145% to 30%, while China will lower its retaliatory tariff from 125% to 10%, both for 90 days. 

The U.S. will also bring down tariffs on lower-value products imported from China, it said on Tuesday.

Chinese markets were subdued as easing tensions reduced bets of an upsized government stimulus package.

China’s Shanghai Composite index and the Shanghai Shenzhen CSI 300, were both largely flat.

Meanwhile, Hong Kong’s Hang Seng index rose more than 1% with major Chinese internet stocks like Alibaba (HK:9988), and Tencent (HK:0700) gaining, mirroring Wall Street gains.

South Korea’s KOSPI also jumped 1.5% on Wednesday, with chip makers Samsung Electronics (KS:005930) and SK Hynix Inc (KS:000660) leading gains. 

Elsewhere, markets were broadly muted on Wednesday.

Australia’s S&P/ASX 200 edged 0.1% lower, while Singapore’s Straits Times Index ticked down 0.3%.

Futures for India’s Nifty 50 were unchanged amid heightened geopolitical tensions with neighboring Pakistan.

Japan shares drop as yen strengthens amid BOJ rate hike bets

Japanese stocks declined on Wednesday as the yen strengthened, driven by growing expectations of a Bank of Japan (BOJ) interest rate hike. 

The Nikkei 225 index fell 0.8%, while the broader Topix index slipped more than 1%.

A stronger yen typically weighs on Japanese exporters, as it reduces the value of overseas earnings when converted back to yen.

Data released Wednesday showed Japan’s wholesale inflation rose to 4.0% in April, highlighting persistent price pressures that are expected to keep the central bank on track for additional interest rate hikes.

The Bank of Japan is set to meet on May 19-20 to decide on its interest rates.

By Leika Kihara

TOKYO (Reuters) -Japan’s wholesale inflation hit 4.0% in April as companies continued to pass on rising raw material and labour costs, data showed, underscoring price pressure that will likely keep the central bank on course to raise interest rates further.

There was little impact seen from U.S. President Donald’s sweeping tariffs announced on April 2, in part due to a 90-day pause set by Washington, with many firms yet to finalise their pricing strategy, a Bank of Japan official said in a briefing on the data released on Wednesday.

The year-on-year increase in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, matched a median market forecast and slowed from a revised 4.3% annual increase in March.

The index, at 126.3, hit a fresh record high for the 8th straight month, in a sign lingering inflationary pressures are feeding into higher consumer prices with some lag.

The yen-based import price index fell 7.2% in April from a year earlier after a revised 2.4% drop in March, a sign the currency’s rebound was taking pressure off import costs.

Global declines in some commodity prices and the phase-out of domestic subsidies aimed at curbing fuel costs also moderated wholesale inflation, the data showed.

But companies continued to hike prices for a wide range of goods in April - the start of Japan’s business year when firms typically review prices.

Food and beverage prices rose 3.6% in April from a year earlier, faster than a 3.4% gain in March. Agricultural goods prices also spiked 42.2% in April after a 39.1% rise in the previous month, the data showed.

The figures paint a mixed picture for the BOJ, which needs to balance risks from Trump’s tariffs and domestic inflationary pressures, in deciding when to resume interest rate hikes.

"The damage to the global economy and trade from U.S. tariffs may be smaller than expected on April 2. But tariffs on cars, auto parts, steel and aluminium remain, so their impact on manufacturers and the economy can’t be ignored," said Takeshi Minami, chief economist at Norinchukin Research Institute.

"The yen, on the other hand, is resuming its downtrend," he said. "While wholesale inflation is seen slowing toward the year-end, there’s a chance the BOJ could raise rates again around September or October."

The BOJ ended a decade-long, massive stimulus last year and raised short-term interest rates to 0.5% in January. While it has signaled readiness to raise rates further, the economic fallout from Trump’s tariffs has complicated its decision on the next rate-hike timing.

Core consumer inflation, which is the key indicator the BOJ uses to set monetary policy, hit 3.2% in March on persistent rises in food costs, staying above the central bank’s 2% target for three years.

The S&P 500 closed higher Tuesday, as data showing inflation slowed in April supported bullish sentiment on risk just days after the U.S.-China trade deal agreement.

At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average fell 269 points, or 0.6%, while the S&P 500 jumped 0.7%, and the NASDAQ Composite gained 1.6%.  

Inflation shows signs of cooling 

The latest consumer price index, released earlier Tuesday, indicated that inflation remained contained, even as economists assessed the impact of rapidly-evolving U.S. trade policies.

The headline consumer price index grew by 2.3% in the 12 months to April, compared with expectations that it would match March’s pace of 2.4%. It was the lowest rate of inflation since February 2021, shortly before pent-up pandemic-fueled demand and supply constraints led to soaring prices. 

Month-on-month, the measure came in at 0.2% following a decline of 0.1% in the prior month, according to Labor Department data on Tuesday. Estimates had called for an uptick of 0.3%.

Core inflation, which strips out volatile items like food and fuel, also rose 0.2% on a monthly basis, below the 0.3% expected, and 2.8% annually.

"There are no signs of tariffs pushing prices yet," Morgan Stanley said in a recent note, just days after the U.S. and China agreed a trade deal. Washington agreed to substantially cut its elevated tariffs on Beijing to 30%, after they were raised to at least 145% by President Donald Trump. China, meanwhile, said it would slash its levies to 10% from a retaliatory level of 125%. Both countries also said they would suspend the tariffs for 90 days.

The U.S. will also bring down tariffs on lower-value products imported from China, further cooling a trade spat with Beijing.

This news prompted economists at Goldman Sachs to cut their estimated risk of a recession in the U.S. to 35% from 45%.

China airlines return to Boeing - Bloomberg; Nvidia surges on major chip deal

In the corporate sector, Boeing (NYSE:BA) stock rose after Bloomberg reported that China has removed a month-long ban preventing local airlines from taking delivery of its planes, in another possible easing of the trade tensions between Washington and Beijing.

Government officials have begun instructing local carriers and government agencies this week that deliveries from the U.S. planemaker can resume, the Bloomberg report said, citing people familiar with the matter.

Elsewhere, NVIDIA Corporation (NASDAQ:NVDA) jumped more than 6% after announcing the sale of 18,000 of AI chips to Saudi Arabian company Humain. The Saudi-based company intends to use the chips to build its 500 megawatt data center.

Unitedhealth (NYSE:UNH) slumped after the health insurer suspended its full-year financial forecast due to a bigger-than-anticipated spike in medical costs, while CEO Andrew Witty has decided to step down from the helm of the company.

Under Armour (NYSE:UAA) stock rose after the sportswear maker’s quarterly revenue topped expectations, even after it reported a first-quarter loss. 

Coinbase Global (NASDAQ:COIN) surged, with the crypto exchange set to join the S&P 500 index, replacing Discover Financial Services (NYSE:DFS) before the start of trading on May 19. 

Peter Nurse, Ambar Warrick contributed to this article.

LONDON (Reuters) - Britain’s jobs market showed further signs of a slowdown as employment fell and growth in wages cooled, according to official data published on Tuesday that is likely to reassure the Bank of England that inflation pressures are waning.

Provisional data provided by employers to the tax authorities showed the number of employees fell by 33,000 in April after 47,000 drop in March.

Vacancies fell further below their pre-COVID pandemic level as they dropped by 42,000 or 5.3% in the three months to April to 761,000, the Office for National Statistics said.

Average weekly earnings, excluding bonuses, rose by 5.6% in the first three months of 2025 compared with the same period last year, the slowest increase since the three months to November last year, the ONS said.

A Reuters poll of economists had pointed to regular wage growth of 5.7%.

"The broader picture continues to be of the labour market cooling," ONS Director of Economic Statistics Liz McKeown said.

The BoE is monitoring closely the inflation pressures in Britain’s labour market as it considers whether to speed up its pace of interest rate cuts.

Sterling was little changed after the data was published.

By Francesco Guarascio

HANOI (Reuters) -Vietnam is stepping up its fight against counterfeits and digital piracy after the United States accused the country of being a major hub for these illegal activities and threatened crippling tariffs, documents reviewed by Reuters show.

Among products that are subject to increased inspections at borders to ascertain their authenticity are luxury goods from Prada (OTC:PRDSY) and Gucci owner Kering (EPA:PRTP), electronic devices made by Google (NASDAQ:GOOGL) and Samsung (KS:005930), and toys from Mattel (NASDAQ:MAT) and Lego, according to a document dated April 1 from the customs department of the finance ministry.

Consumer goods such as shampoos and razors sold by Procter & Gamble (NYSE:PG) and Johnson and Johnson products are also included in the list, the document showed.

The crackdown focuses on imported counterfeits, not those that could be made in Vietnam, which are also of concern to the administration of U.S. President Donald Trump.

A clampdown on the use of counterfeit software is also underway, according to a warning from inspectors at the Ministry of Culture sent on April 14 to a local company, whose name was redacted from the document seen by Reuters.

The letter, it says, followed a complaint from the Business Software Alliance (BSA), the industry’s global trade association, whose members include Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL) and Adobe (NASDAQ:ADBE).

A person familiar with the matter said similar letters have been sent to dozens of companies since the start of April.

Vietnam’s finance and culture ministries and the customs department did not reply to requests for comment, nor did any of the mentioned companies.

A spokesperson for BSA said it has for years urged Vietnam to monitor and take action against the unauthorised use of software.

Vietnam’s recent moves are part of an array of measures taken or pledged by the Southeast Asian export-reliant industrial hub to persuade the Trump administration to reconsider punitive tariffs. Vietnam faces duties of 46% on exports to the U.S., its largest market, if confirmed in July after a global pause.

Vietnam and the U.S. began informal talks to avoid tariffs well before Trump announced global "reciprocal" duties on April 2.

Enhanced protection of intellectual property, including the fight against counterfeits and digital piracy, is among the issues being discussed with the U.S. in ongoing tariff talks.

Also under discussion are the reduction of Vietnam’s big trade surplus, the fight against trade fraud such as illegal transshipment, and lowering tariff and non-tariff barriers for U.S. businesses, according to a person briefed on the matter.

Prime Minister Pham Minh Chinh last month instructed officials to strengthen the fight against trade fraud, "especially regarding the origin of goods, counterfeit goods."

The measures are meant to please Washington but some may irk China, which is the main source of Vietnam’s imports.

"NOTORIOUS MARKETS"

Despite enhanced controls on imported counterfeits, fake luxury goods targeted by the authorities were on display last week at Saigon Square Shopping Mall in Vietnam’s business hub Ho Chi Minh City.

The mall is on the list of "notorious markets for counterfeiting" published in January by the U.S. Trade Representative.

"They are not authentic and are made in China," said an attendant in one of the stalls in the market, referring to Prada wallets and bags she’s selling.

She noted counterfeit Prada belts, also available at her stall, were made in Vietnam. The person declined to be named due to the sensitivity of the subject.

Calls to Saigon Square went unanswered. Its website says the mall offers "imitations of famous brands at low prices".

The USTR removed a Vietnamese marketplace at the border with China from its latest watchlist published in January after a crackdown by local authorities. It praised Vietnam’s efforts to combat illegal practices, but also expressed concerns over continuing online sales of counterfeit products and Vietnam’s role in producing fakes.

The Vietnamese platform of Singapore-based e-commerce giant Shopee remained a major hub for the sale of counterfeits, the USTR said.

"As more brands have shifted production from China to Vietnam, stakeholders report that Vietnam has become a key manufacturer of counterfeit products," the USTR said in a separate report published in April.

The USTR and Shopee did not reply to requests for comment.

To improve copyright protection Vietnam is planning to set up specialised courts "to fulfil Vietnam’s commitment... to strictly enforce intellectual property rights" and attract foreign investment, according to a draft law reviewed by Reuters scheduled to be approved by parliament in June.

Most Asian stocks rose on Tuesday as investors cheered a sharp deescalation in the U.S.-China trade war, although Chinese markets lagged amid some profit-taking and speculation over a delay in more local stimulus. 

Regional markets took a positive lead-in from Wall Street, which clocked stellar gains in overnight trade after Washington and Beijing slashed their respective trade tariffs against each other.

But investors were now holding out for an even bigger deescalation in the tariff exchange, given that both countries still maintained some trade tariffs against each other. U.S. stock index futures fell slightly in Asian trade, with S&P 500 Futures futures falling 0.3% after the S&P 500 rallied 3.3% on Monday. 

Markets were also on edge ahead of key U.S. inflation data due later on Tuesday. 

Asia stocks cheer US-China tariff deescalation 

Japan’s Nikkei 225 and TOPIX indexes were the best performers in Asia, rallying 1.7% and 1.2%, respectively. 

Singapore’s Straits Times index added 0.7%, while Australia’s ASX 200 rose 0.7% to its highest level since late-February, following data showing a mild improvement in consumer sentiment. 

South Korea’s KOSPI added 0.4%, while markets across Southeast Asia also advanced. 

U.S. and Chinese officials said on Monday that Washington will cut its trade tariffs on China to 30% from 145%, while Beijing will cut its tariffs on the U.S. to 10% from 125%. 

The move marked a major deescalation in a bitter trade war between the world’s largest economies, and spurred hopes that the U.S. will reach trade deals with several other major economies. 

Chinese shares lag amid profit-taking, stimulus doubts 

But despite the trade deescalation, Chinese markets vastly lagged their regional peers, in part due to some profit-taking after a strong run-up in the past week. The mainland Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose about 0.2% each, while Hong Kong’sHang Seng index slid 1.3% from a one-month high. 

Improving sentiment over a U.S.-China trade deescalation had driven strong gains in Chinese markets over the past week, limiting their upside after Monday’s move. 

But analysts also flagged the potential for some delays in Beijing’s plans for more stimulus, especially in the face of fewer trade headwinds. Citi analysts said that lower trade tensions gave Beijing less impetus to unlock more stimulus, especially on the fiscal front.

The need for more Chinese stimulus was underscored by a swathe of weak purchasing managers index and inflation readings for April. Weak inflation data released over the weekend also dampened enthusiasm towards Chinese markets. 

Indian stocks to cool after rallying on Pakistan ceasefire 

Gift Nifty 50 Futures for India’s Nifty 50 index pointed to a slightly weak open on Tuesday, with local stocks set for some profit-taking after rallying nearly 4% in the prior session.

Gains in Indian markets were driven by optimism over a U.S.-brokered ceasefire with Pakistan, which appeared to be holding after a shaky start during the weekend. 

The ceasefire marked a deescalation in some of the worst fighting between India and Pakistan in nearly three decades. 

Indian consumer inflation data is due later in the day, and is expected to show further cooling in April.