Markets Rally as U.S.-China Trade Tensions Ease

Asian stocks soared as the U.S. and China temporarily halted their trade war, easing fears of a global recession. The agreement led to significant gains across global markets, including a 3% rise in the S&P 500. However, concerns remain over the long-term impact of existing tariffs.

Asian stocks surged, joining a global market rally after the U.S. and China agreed to a temporary halt in their trade war, calming fears of a potential global recession.

Japan's Nikkei Index jumped 2%, reaching heights not seen since late February, while Taiwan's tech sector mirrored the rise. Chinese stocks saw mild gains, propelling the MSCI Asia-Pacific Index outside Japan to a six-month high. U.S. markets responded robustly, with the S&P 500 increasing by over 3% and the Nasdaq by 4.3%, following an agreement between the U.S. and China to reduce tariffs for 90 days.

Despite the current optimism, some analysts remain cautious about the long-term effects of remaining tariffs, even as the U.S. dollar gained ground against major currencies initially. With U.S. inflation data on the horizon, traders are now focusing on Federal Reserve policies and potential interest rate cuts.

(With inputs from agencies.)