Jakarta. Asian stocks advanced Tuesday even as US President Donald Trump unleashed a sweeping new round of import tariffs on major trading partners, including Japan, South Korea, and Indonesia, with investors betting that an extended negotiating window could avert a deeper trade shock.

Trump on Monday imposed a 25 percent tariff on goods imported from Japan and South Korea while setting new import taxes on a dozen other nations, effective Aug. 1. The tariffs will hit imports from Myanmar and Laos at 40 percent, Cambodia and Thailand at 36 percent, Serbia and Bangladesh at 35 percent, Indonesia at 32 percent, South Africa and Bosnia and Herzegovina at 30 percent, and Kazakhstan, Malaysia, and Tunisia at 25 percent.

Indonesia’s benchmark Jakarta Composite Index (JCI) rose 0.05 percent to close at 6,904.02, rebounding from early weakness as local sentiment found support from IPO activity and resilient consumer confidence data despite heightened global trade tensions. The index traded between 6,885.28 and 6,916.83 during the session, with 308 decliners outpacing 276 gainers, while 209 stocks were unchanged. 

Japan’s Nikkei 225 gained 0.3 percent, South Korea’s Kospi surged 1.8 percent, and Hong Kong’s Hang Seng rose 0.7 percent, shrugging off overnight losses on Wall Street triggered by the tariff escalation and a fresh political rift between Trump and Tesla’s Elon Musk. China’s Shanghai Composite added 0.7 percent, while Australia’s ASX 200 slipped 0.1 percent.

The White House said the tariffs aimed to protect domestic industries from foreign competition, particularly in textiles, electronics, and footwear, while signaling openness to roll back the duties if trading partners, including Indonesia, agreed to build production facilities in the United States.

“Markets treated today’s fresh round of ‘maybe talks, maybe not’ as more background noise than breaking news,” said Stephen Innes, managing partner at SPI Asset Management. “Investors have seen this cycle before: tariff threats, rising rhetoric, followed by a pivot to negotiations.”

Pilarmas Investindo Sekuritas, in its research note, said the extension of the tariff deadline from July 9 to Aug. 1 provided “hope for negotiators to strike a deal,” helping ease near-term anxieties in the region. The brokerage also cited optimism from the IPO activity of eight new Indonesian issuers, providing a cushion for local equities despite the external headwinds.

Indonesia’s June consumer confidence index rose to 117.8 from 117.5, Bank Indonesia data showed, signaling steady domestic consumption amid rising global uncertainties.

Permata Bank’s Chief Economist Josua Pardede said Indonesia’s manufacturing sectors, including electronics, garments, and furniture, could face immediate pressure, potentially trimming 0.3 percent to 0.5 percent off Indonesia’s GDP growth, previously projected at 5.1% for the year.

“Indonesia will need to anticipate export slowdowns and potential investor wait-and-see attitudes, which could unavoidably lead to domestic economic moderation,” Josua said.

On Wall Street, the S&P 500 fell 0.8 percent on Monday, while the Dow Jones and Nasdaq each dropped 0.9 percent as investors weighed the risk of a prolonged global trade war against resilient US economic data.