Asian stock markets displayed a mixed performance on Tuesday, as the initial enthusiasm following the 90-day trade truce between the United States and China dissipated, with analysts cautioning that President Donald Trump's policies remained subject to rapid alteration.

In a joint declaration, the United States and China announced significant tariff reductions. The US committed to decreasing tariffs on Chinese imports from a peak of 145% to 30%, while China pledged to lower its tariffs on US goods from 125% to 10%. This move is intended to facilitate further discussions subsequent to the weekend's negotiations in Geneva, Switzerland, which the US delegation characterized as having achieved "substantial progress."

The outcome exceeded most projections, restoring investor confidence," stated Stephen Innes of SPI Asset Management.

He said in a commentary that this diplomacy was clearly carefully managed, but it looked good and had important effects. It shows that even this government understands that continuous tariffs are bad for the economy.

Nonetheless, significant hurdles persist in the discussions between Beijing and Washington, and numerous Asian nations have yet to secure their own agreements aimed at reducing tariffs.

Beijing's displeasure regarding the trade conflict is still evident, as Chinese leader Xi Jinping underscored Beijing's position that a trade war benefits no one and that "bullying or dominance ultimately results in self-imposed isolation" in his address to Chinese and Latin American officials on Tuesday.

Tokyo's Nikkei 225 saw a notable increase, rising 1.6% to reach 38,232.21, with automobile manufacturers experiencing significant gains, such as Toyota Motor Corp. which advanced by 3.7% and Suzuki Motor Corp. which climbed 4.3%.

Nissan Motor Co.'s stock rose by 3.4% following a report from NHK, Japan's national broadcaster, indicating the company's intention to dismiss an additional 10,000 employees, bringing the total job cuts to 20,000, as part of its ongoing restructuring program.

South Korea's Kospi index remained relatively stable, closing at 2,606.46.

Hong Kong's Hang Seng Index experienced a 1.5% decline, settling at 23,189.15, following a 3% surge the preceding day. This earlier gain was prompted by the announcement from Chinese and U.S. officials regarding a tariff pause and reduction, while the subsequent drop was attributed to substantial selling pressure on technology stocks.

The Shanghai Composite index slightly increased by 0.2%, reaching 3,376.22, while Taiwan’s Taiex experienced a 1% surge.

The S&P/ASX 200 index in Australia saw a rise of 0.5%, reaching 8,274.70 points.

The world's two largest economies reached an agreement on Monday to eliminate the majority of their reciprocal tariffs.

This upward surge propelled the S&P 500 by 3.3%, bringing it to within 5% of the peak it achieved in February.

The main index for many 401(k) accounts is now higher than it was on April 2nd, which Trump called “Liberation Day.” On that day, he announced high tariffs around the world, which made people worry about a possible recession caused by his actions.

The Dow Jones Industrial Average saw a notable rise of 2.8%, while the Nasdaq composite experienced a substantial surge of 4.3%.

Following a surge on Monday, oil prices saw a decline, with the U.S. benchmark crude decreasing by 22 cents to $61.73 per barrel, and Brent crude, the global standard, dropping by 25 cents to $64.72 per barrel.

The U.S. dollar exhibited broad strength on Monday, appreciating against a spectrum of currencies including the euro, Japanese yen, and Swiss franc. However, by early Tuesday, the dollar had slightly receded against the Japanese yen, trading at 147.98 compared to its prior level of 148.47 yen. Conversely, it registered gains against the euro, ascending to $1.1113 from $1.1088.

The temporary cessation in U.S.-China trade discussions followed an agreement the United States unveiled last week with the United Kingdom, which will reduce tariffs on numerous U.K. imports to 10%, although this process will still necessitate several weeks for implementation.

Forthcoming economic reports, such as those addressing inflation and American consumer confidence, may reveal the extent of economic damage inflicted by tariff uncertainty.

Numerous retailers experienced gains, likely because a substantial portion of their merchandise originates in China and other Asian countries; for instance, Best Buy saw a 6.6% increase, while Amazon's shares surged by 8.1%.

U.S. small-cap firms, whose financial health is more intricately linked to the domestic economy than that of their larger counterparts, experienced significant increases, with the Russell 2000 index rising by 3.4%.

Clothing companies that procure a significant portion of their materials from China also experienced gains.