(Sharecast News) - Equity markets in the Asia-Pacific region enjoyed a broadly positive session on Tuesday, rebounding after Monday's sharp losses.
Investors across the region appeared cautiously optimistic while awaiting further clarity on US president Donald Trump's tariff measures.
"Asian stocks rebounded after a multi-day losing streak, driven by heightened market volatility as president Donald Trump prepared to unveil his tariff plan," noted TickMill market strategy partner Patrick Munnelly.
"The regional MSCI index climbed as much as 1.1%, with Taiwanese and South Korean shares leading the gains.
"Gold surged to a new high amid increased demand for safe-haven assets, while the dollar posted modest gains against most G10 currencies."
Munnelly noted that Trump's reciprocal tariff plan was set to be announced on Wednesday during an event at the White House Rose Garden, but added that details of the tariffs remained unclear, prompting traders to tread cautiously.
"Concerns about the potential impact on US economic growth and inflation have tempered large investment moves ahead of the announcement.
"Global markets remain on edge, grappling with heightened volatility following the worst quarterly performance for US stocks relative to global equities since 2009.
"The event marked the first time since the pandemic's onset in March 2020 that bonds gained while stocks fell over a three-month period."
Markets in the green across the Asia-Pacific region
In Japan, the Nikkei 225 edged up 0.02% to 35,624.48, supported by strong gains in Daiichi Sankyo and Chubu Electric Power.
The broader Topix index rose 0.11%.
In China, the Shanghai Composite advanced 0.38% to 3,348.44, lifted by strong performances in industrial and power sector stocks.
However, the Shenzhen Component slipped 0.01%, reflecting lingering investor caution.
Hong Kong's Hang Seng Index also added 0.38%, closing at 23,206.84, bolstered by a rally in pharmaceutical and technology names, with CSPC Pharmaceutical Group soaring nearly 11%.
South Korea led regional gains, as the Kospi 100 jumped 1.83% to 2,550.25, powered by robust performances in Kakao Corporation and Hanwha Solutions.
Australia's S&P/ASX 200 rose 1.04% to 7,925.20, after the Reserve Bank of Australia held interest rates steady, in line with expectations ahead of the country's 3 May federal election.
Across the Tasman Sea, New Zealand's S&P/NZX 50 posted a modest gain of 0.35% to settle at 12,312.60, supported by strength in consumer and energy stocks.
Currency markets showed modest moves, with the dollar last down 0.23% on the yen, trading at JPY 149.62, as it weakened 0.1% against the Aussie to AUD 1.5992.
The greenback was, however, stronger on the Kiwi, rising 0.01% to change hands at NZD 1.7613.
Oil prices softened, with Brent crude futures last down 0.43% on ICE to $74.45 per barrel, and the NYMEX quote for West Texas Intermediate declining 0.45% to $71.16.
RBA holds rates as expected, China manufacturing activity gains momentum
In economic news, the Reserve Bank of Australia left its benchmark interest rate unchanged at 4.1% on Tuesday, as expected, despite a continued drop in inflation.
The central bank acknowledged that price pressures were easing more quickly than anticipated, with February's inflation reading falling to 2.4%.
However, policymakers warned that loosening monetary policy too soon could risk reversing recent progress in curbing inflation.
In China, manufacturing activity gained momentum in March, according to the Caixin/S&P Global survey.
The manufacturing PMI rose to 51.2, the highest in four months, buoyed by stronger overseas demand and a rebound in employment.
New export orders increased at the fastest pace in nearly a year, and overall demand held firm for a sixth consecutive month.
The reading followed an official PMI report showing manufacturing growth at its strongest pace in a year.
South Korea recorded a second straight month of export growth, with shipments rising 3.1% in March to $58.24bn.
While the pace missed expectations, the country still posted a trade surplus of $4.99bn.
Imports rose 2.3%.
However, factory activity remained subdued, as a separate survey showed the manufacturing PMI dipping slightly to 49.1 due to soft domestic demand.
In Japan, the unemployment rate edged down to 2.4% in February, the lowest since December, slightly beating forecasts.
The jobs-to-applicants ratio slipped to 1.24.
Meanwhile, the Bank of Japan's quarterly Tankan survey revealed weaker sentiment among large manufacturers, with the index falling to +12 in March from +14.
That marked the lowest confidence level in a year.
Sentiment among non-manufacturers improved slightly, and capital expenditure plans rose modestly, though well below last year's pace.
Reporting by Josh White for Sharecast.com.
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