Asian stocks rose on Tuesday after President Donald Trump announced a one-month delay in tariffs on Mexico and Canada, reports AP.

Markets across Asia showed positive movement. Hong Kong's Hang Seng Index increased by 2.10% to 20,642.58, Japan’s Nikkei 225 gained 1.61% to 39,140.41, South Korea’s Kospi rose by 1.63% to 2,493.99, and Australia’s S&P/ASX 200 inched up 0.13% to 8,390.20.

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The White House also stated that Trump would be speaking with Chinese President Xi Jinping, igniting hopes of a potential deal that could prevent a wider trade war. Last week, Trump imposed a 10% tariff on Chinese goods, which is expected to take effect on Tuesday.

Canada confirmed that a deal with the U.S. for a month-long tariff reprieve was reached, but the announcement came only after U.S. markets had closed.

Analysts attributed Tuesday's market rally to the tariff delay for countries like Canada and Mexico.

Yeap Jun Rong, a market strategist at IG, noted in a report that the pullback in the US dollar and the optimism surrounding tariff relief could help sustain market gains unless unexpected issues arise in US-China trade talks. He also commented that the delay reflects Trump’s willingness to negotiate and could signal that tariffs are being used more as leverage in negotiations rather than fixed policies.

On Monday, the S&P 500 dropped by 0.8%, the Dow Jones Industrial Average lost 122 points (0.3%), and the Nasdaq composite fell by 1.2%. U.S. stocks recovered some of their losses after Mexico confirmed a monthlong reprieve from Trump’s tariffs.

In energy markets, benchmark U.S. crude oil fell by $0.77 to $72.39 per barrel, while Brent crude, the international standard, declined by 36 cents to $75.60 a barrel.

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The U.S. dollar strengthened slightly, rising from 154.75 yen to 155.13 yen. The euro weakened slightly, dropping to $1.0317 from $1.0345.