Asian stock markets opened higher Tuesday after U.S. indexes neared all-time highs and oil prices continued to rise. The U.S. extended tariff exemptions on certain Chinese goods—most notably solar manufacturing equipment—by three months, easing some trade friction. These exemptions, which were set to expire on May 31, will now run until August 31.
Despite the extensions, China criticized U.S. actions that it says hurt its interests. Beijing pointed to new U.S. export controls on artificial intelligence chips, a halt in sales of chip design software to China, and plans to revoke some Chinese student visas.
Gains Across Major Asian Markets
Hong Kong: The Hang Seng Index rose 1.1% to 23,417.39.
Shanghai: The Composite Index gained 0.3% to 3,356.36.
Tokyo: The Nikkei 225 climbed 0.6% to 37,683.19.
Australia: The S&P/ASX 200 increased 0.7% to 8,475.50.
Taiwan: The Weighted Index jumped 1.4%.
South Korea’s markets were closed due to a snap presidential election called after President Yoon Seok-yeol was ousted. Yoon faces a high-profile sedition trial related to his brief declaration of martial law in December.
U.S. Stocks Near All-Time Highs
U.S. indexes rose Monday, capping a strong May and moving closer to record levels. The S&P 500 added 0.4% to 5,935.94. The Dow Jones Industrial Average ticked up 0.1% to 42,305.48. The Nasdaq Composite gained 0.7% to 19,242.61. Early losses in the day—near 1%—were driven by weaker U.S. manufacturing data.
President Donald Trump has warned that his tariff push to bring manufacturing jobs back to America could cost U.S. businesses and households. This uncertainty has weighed on markets.
Despite those concerns, shares of tech giants rallied. Nvidia rose 1.7%, and Meta Platforms climbed 3.6%.
Oil Prices Climb on Ukraine-Russia Tensions
Oil prices continued to rise as uncertainty over Ukraine’s attacks on Russia threatened global oil and gas flows. In early Tuesday trading, U.S. benchmark crude oil increased 62 cents to $63.14 per barrel. Brent crude, the international benchmark, rose 57 cents to $65.19 per barrel.
U.S. Steelmakers Surge After Tariff Threat
President Trump recently accused China of not fully honoring a tariff suspension deal. He also said he would double steel tariffs to 50% to protect American steelworkers. This threat sent shares of U.S. steelmakers sharply higher. Nucor Corp. jumped 10.1%, and Steel Dynamics Corp. climbed 10.3%.
Auto makers and other heavy users of steel and aluminum fell on the news. Ford dropped 3.9%, and General Motors fell 3.9%.
Markets React to Biotech News
Lyra Therapeutics shares surged nearly 311% after the company announced positive results from a late-stage trial for a chronic sinusitis implant. This made Lyra one of the biggest gainers on the market that day.
Treasury Yields Rise as Deficit Concerns Grow
In bond markets, U.S. Treasury yields climbed amid worries about rising government debt driven by proposed tax cuts. The 10-year Treasury yield rose to 4.44% from 4.41% on Friday. Two months earlier, it was around 4.01%. Higher yields can raise borrowing costs for households and businesses, and they may make stocks less attractive.
Yields dipped briefly Tuesday before recovering. A mixed manufacturing report from S&P Global showed that tariffs were starting to impact supply chains and push up costs.
Dollar Strengthens Against Yen, Euro Slightly Down
In early trading Tuesday, the U.S. dollar rose to 143.10 Japanese yen from 142.71. The euro fell to $1.1438 from $1.1443.
Stocks, oil prices, and bonds each reacted to a mix of trade policy developments, economic data, and geopolitical risks, leaving markets watching closely for what comes next.
