In Singapore, global stocks surged, the dollar stabilized, and a frenzied bond sell-off calmed down after President Donald Trump announced a temporary reduction in the hefty tariffs he had recently imposed on many countries. The reversal came after a significant market downturn that wiped out trillions of dollars in stock value and impacted U.S. Treasury bonds and the dollar.

Wall Street saw substantial gains following the news, with major indices like the S&P 500 and Nasdaq Composite Index experiencing their largest percentage increases in over a decade, boosting market value by more than $1.5 trillion. However, U.S. futures fell on Thursday, with Nasdaq and S&P 500 futures decreasing.

The dollar saw a significant increase in value against the yen and Swiss franc, maintaining most of those gains in Asian trading sessions. Japan's Nikkei rose by 8%, while European futures also saw a spike.

Despite the positive reaction in the market, concerns remain about the overall impact of the tariffs due to the long-term implications. The news surprised many market participants, indicating a strong risk-on sentiment following the announcement.

While Trump's decision to pause country-specific tariffs was unexpected, a blanket 10% duty on most U.S. imports will remain in effect. The announcement also does not affect tariffs on automobiles, steel, and aluminum that are already implemented.

The tensions between the U.S. and China persist, with both countries imposing additional duties on each other's products. The possibility of a full rollback of all additional tariffs remains uncertain, but talks between the countries may eventually take place, despite the current impasse.