Trade Tensions Rock Global Markets Amid Trump's Tariff Twists

Asia shares inched higher, bolstered by gains in the auto sector following hints from President Trump about possible tariff exemptions. Meanwhile, U.S. Treasury bonds stabilized, despite ongoing trade policy uncertainties casting a shadow on the global economic outlook. Investors remained cautious amid volatile market conditions.

Asia's shares nudged up marginally on Tuesday, thanks to a surge in auto sector stocks after U.S. President Donald Trump insinuated potential exemptions on existing auto-related tariffs.

Meanwhile, U.S. Treasury bonds saw stability after recovering from last week's significant downturn, although investor trust in the dollar continued to wane.

Nevertheless, Trump's inconsistent trade announcements maintained market unpredictability, affecting global economic forecasts and investor sentiment.

(With inputs from agencies.)