Asian stock markets climbed on Tuesday, extending a calm stretch for investors even as talk of more U.S. tariffs kept worries about global trade in the air. 

Traders in the region took their cue from Wall Street, where major indexes finished Monday almost unchanged ahead of a heavy week of earnings reports and economic figures likely to stir fresh swings.

With Tokyo shut for a holiday, moves in Asia centered on Hong Kong and Shanghai. Hong Kong’s Hang Seng Index advanced 0.5% to 22,070.23. The Shanghai Composite inched 0.1% lower to 3,286.49 after flipping between small gains and losses. 

South Korea’s Kospi jumped 0.8% to 2,568.62, while Australia’s S&P/ASX 200 also rose 0.8% to 8,061.90. Taiwan’s Taiex added 0.5%. U.S. Futures ticked higher in the overnight session, and oil prices eased.

For a second straight session, trading volumes were light. The quiet spell has been a relief after weeks of abrupt moves sparked by shifting hopes that President Donald Trump might soften his stance on trade. So far, little progress is visible. Washington and Beijing each say the other must act first. 

Scott Bessent thinks China wants a de-escalation

Treasury Secretary Scott Bessent told CNBC he thinks China “wants a de-escalation” but warned he carries “an escalation letter in my back pocket, and we’re very anxious not to have to use it.” Speaking later to Fox News, he added, “Maybe they’ll call me one day.”

Since April 2—dubbed “Liberation Day” by the White House—Trump has ordered tariff increases on Chinese goods that together reach 145%. Beijing has answered with duties of up to 125% on imports from the United States, while carving out a few exemptions. 

Many market watchers say the tit-for-tat measures risk tipping the U.S. economy into recession if left in place. Before Monday’s trading began, the S&P 500 erased roughly half of its slide, which had taken it nearly 20% below the record it set earlier this year.

Reports to date show the U.S. economy is still expanding, though momentum is slowing. Economists surveyed expect Wednesday’s first-quarter reading to show growth cooled to an annual rate of 0.8%, down from 2.4% in the final three months of last year. 

Most numbers so far reflect conditions before the April 2 tariff announcement, raising the stakes for fresh figures. Friday’s jobs report will reveal how many workers employers hired in April; forecasts point to a pullback to 125,000 from March’s 228,000.

Households appear to be feeling the strain. Recent surveys indicate consumers have grown markedly less upbeat about the future. The Conference Board’s latest consumer confidence reading is due later Tuesday.

Bond yields stayed lower after retreating from an unusual spike earlier in the month that rattled Wall Street and Washington. The yield on the 10-year Treasury held steady at 4.21% early Tuesday. That earlier surge had raised fears that global investors were questioning the U.S. bond market’s standing as a dependable haven.

Energy markets were softer. Benchmark U.S. crude slipped 33 cents to $61.72 a barrel in electronic trading. Brent crude, the international standard, fell 32 cents to $64.46. In currency dealings, the dollar fetched 142.36 Japanese yen, up from 142.02 yen late Monday. The euro eased to $1.1401 from $1.1422.

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