A man is observed examining a digital display showing the Nikkei Stock Average numbers at the Tokyo Stock Exchange in Tokyo, as depicted in a photo by Kazuhiro Nogi/AFP/Getty Images.

Asian markets experienced a significant increase following President Donald Trump's decision to delay the trade war for 90 days. Trump's decision came after a decline in US Treasurys. Although China did not receive any reprieve, stocks maintained an upward trend due to state support.

Early on Thursday, Asian markets saw a surge in trading following Trump's announcement to halt the trade war for 90 days. Major indexes in Asia closed with notable gains:

- Nikkei 225: +9.1% - Kospi: +6.6% - ASX 200: +4.5% - Hang Seng Index: +1.9% - CSI 300: +1.3% - Taiex: +9.3%

Trump suspended most reciprocal tariffs but maintained the 10% baseline rate. Nevertheless, he increased tariffs on Chinese imports to 125%, escalating the trade conflict between the two countries. Despite this, Chinese stock markets remained positive on Thursday, supported by state-backed buying and anticipation of stimulus measures from Beijing.

Analysts cautioned that the tariff pause is temporary as negotiations progress, with the baseline tariff rate remaining at a historically high level. There are concerns about the unpredictability of policies that could lead to economic decoupling between the US and China.

The decision by Trump followed a drop in US Treasurys in what some refer to as the "Sell America" trade. The increased selling of Treasurys led to higher yields, potentially raising interest rates, which contradicts Trump's aim to lower borrowing costs for Americans.

A treasury auction of $39 billion in 10-year notes showcased stronger demand than anticipated, easing worries following a less successful auction of three-year notes the previous day.