Markets across Asia began the day with a relief rally after the U.S. struck last-minute deals with Mexico and Canada to delay tariffs, but the mood took a turn when China hit back with new levies on the U.

Among the biggest uncertainties is how a resilient US economy would handle the impact of a trade war, in case it materializes. That concern was evident in the bond market, where short-dated Treasury yields climbed as longer ones moved in the opposite direction.

Asia markets are mostly higher on Friday following gains on Wall Street driven by Tesla, IBM and Meta Platforms after strong profit reports. Japan's core inflation rate, a key indicator of national trends,

Asia-Pacific markets rose Tuesday after Donald Trump paused tariffs on Mexico for a month, while Canada also said the U.S. president had put on hold proposed tariffs on its exports. Japan's benchmark Nikkei 225 started the day 1.64% higher, while the broader Topix index advanced 1.37%.