Jakarta. Asian shares surged on Thursday, with Japan’s benchmark index jumping more than 2,000 points at the open, after President Donald Trump announced a pause on most of his tariffs. The rally mirrored a historic rebound on Wall Street the previous day.

Investors across the region reacted to Trump’s decision to temporarily ease trade tensions, especially those targeting key US allies. Analysts said the move helped calm fears of a deepening global recession triggered by the trade war.

Japan’s Nikkei 225 index soared 8.2 percent in morning trading to 34,302.05. Australia’s S&P/ASX 200 climbed 4.7 percent to 7,721.40, South Korea’s Kospi gained 4.9 percent, and Hong Kong’s Hang Seng added 2.8 percent to 20,821.48. China’s Shanghai Composite edged up 0.6 percent to 3,207.35, while Indonesia’s Jakarta Composite Index rose 4.3 percent.

“It’s a shift from fear to euphoria,” said Stephen Innes, managing partner at SPI Asset Management. “For most of Asia’s exporters, this is a major relief as recession concerns begin to unwind.”

The rally followed a massive bounce on Wall Street. The S&P 500 soared 9.5 percent -a gain that would be strong for a full year- while the Dow Jones Industrial Average surged nearly 3,000 points, or 7.9 percent. The Nasdaq composite leaped 12.2 percent, marking one of the index’s best days on record.

The recovery came after Trump posted on social media that he had authorized a 90-day pause on new tariffs, praising countries that had not retaliated against previous hikes. Treasury Secretary Scott Bessent confirmed the pause applied to most major US trading partners. However, Trump said tariffs on Chinese goods would rise to 125 percent, signaling continued tension with Beijing.

While the move boosted investor sentiment, analysts warned that the trade war is far from over. Markets remain vulnerable to renewed volatility, especially given the aggressive stance on China.

Still, Wednesday’s surge helped pull the S&P 500 out of near-bear market territory. The index had been nearly 19 percent below its recent peak but is now down 11.2 percent. The rebound also signaled renewed investor confidence that Trump would respond to financial market stress.

Wall Street was also buoyed by a smooth US Treasury auction, which calmed recent jitters about bond markets. The yield on the 10-year Treasury note, which had climbed sharply earlier in the week, eased to 4.34 percent from a high of 4.50 percent, though it remains up from 4.01 percent last Friday.

Rising yields had stoked fears of tightening credit conditions, as higher Treasury yields push up rates on mortgages and other loans. Analysts attributed the increase partly to hedge funds and overseas investors selling Treasurys to raise cash amid market losses.

In commodities, U.S. crude oil fell 56 cents to $61.79 per barrel, while Brent crude lost 74 cents to $64.74. The U.S. dollar weakened to 146.83 yen from 147.38, while the euro rose to $1.0980 from $1.0954.

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