Asian markets started trading higher on Tuesday, with Japan's Nikkei 225 index rebounding by 5.5% following a significant drop of almost 8% the day before. This rise came after a volatile trading day on Wall Street, prompted by President Donald Trump's warning of increasing double-digit tariffs. Within half an hour of opening, the Nikkei 225 surged to 32,819.08 in Tokyo.

South Korea's Kospi also saw a 2% increase, while markets in New Zealand and Australia experienced positive movements as well. The previous day, Asian markets faced a major decline, particularly with Hong Kong stocks plummeting by 13.2% in the worst day since the 1997 Asian financial crisis.

The S&P 500 closed slightly lower on Monday as investors closely monitored Trump's trade actions. The Dow Jones Industrial Average dropped by 349 points (0.9%), while the Nasdaq composite saw a slight increase of 0.1%. Initially starting on a downward trend, the market turned around dramatically, with the Dow Jones rising nearly 900 points mid-morning.

The sudden turnaround was fueled by a false rumor about a potential 90-day pause on tariffs by Trump, later refuted by a White House source. Investors are closely watching for any signs of a possible easing of tariff tensions. Subsequently, stocks retreated after Trump reiterated the possibility of further tariff hikes against China in response to recent retaliatory actions.

Trump's tariff policies aim to restructure global trade arrangements to benefit domestic manufacturing, a process that may take years to materialize. Despite the market fluctuations in reaction to Trump's tariff threats, there is optimism among investors that negotiation efforts could prevent the full implementation of stringent tariffs on all imports.