Asian stock markets exhibited varied performance on Tuesday, as the initial enthusiasm surrounding the ninety-day trade war ceasefire between the United States and China diminished, with analysts cautioning that President Donald Trump’s policy stances could still undergo rapid alteration.

In a joint declaration, the United States and China revealed their intention to significantly reduce reciprocal tariffs. The U.S. is set to decrease duties on Chinese imports to 30% from a peak of 145%, while China indicated its tariffs on American goods would be lowered to 10% from 125%. This measure provides a crucial window for further deliberations subsequent to the weekend's discussions in Geneva, Switzerland, which the U.S. delegation characterized as having achieved "substantial progress."

The outcome considerably exceeded a majority of expectations, instilling confidence in investors, according to Stephen Innes of SPI Asset Management.

In a commentary, he said that although this diplomacy was clearly planned very carefully, it looked good and had real effects. It shows that even this government understands that constant tariffs are bad for the economy.

Nonetheless, significant obstacles persist in the ongoing discussions between Beijing and Washington, and numerous Asian nations have not yet concluded agreements to mitigate tariffs independently.

Beijing is still clearly angry about the trade war. On Tuesday, when speaking to officials from China and Latin America, Chinese leader Xi Jinping repeated Beijing's view that no one benefits from a trade war and that "acting like a bully or trying to dominate others only makes you isolated."

Tokyo’s Nikkei 225 index surged by 1.6%, reaching 38,232.21, with notable advances among automotive manufacturers, including Toyota Motor Corp. which rose 3.7%, and Suzuki Motor Corp. which saw a 4.3% increase.

Nissan Motor Co.'s stock rose by 3.4% following a report from Japan's national broadcaster, NHK, stating the company intends to dismiss over 10,000 employees, bringing the total number of job cuts to 20,000, as part of ongoing restructuring initiatives. The company was scheduled to release its financial performance for the preceding fiscal year later on Tuesday.

South Korea's Kospi index concluded trading virtually unaltered, settling at 2,606.46.

The Hang Seng index in Hong Kong, which had experienced a 3% rise the previous day following the announcement by Chinese and U.S. officials of a tariff truce and reduction, dropped by 1.5% to 23,189.15 amidst considerable sell-offs in the technology sector.

The Shanghai Composite index advanced marginally by 0.2% to reach 3,376.22, while Taiwan's Taiex experienced a notable increase of 1%.

The S&P/ASX 200 index in Australia rose by half a percentage point, reaching a value of 8,274.70.

On Monday, the two largest economies globally reached an accord to abolish most of their reciprocal tariffs.

This surge drove the S&P 500 index up by 3.3%, bringing it within 5% of the peak it reached in February. Having dropped almost 20% from that high, the index rebounded significantly last month, fuelled by anticipation that President Donald Trump might reduce import duties upon securing trade agreements with other nations.

The main stock market index that affects many 401(k) retirement accounts is now higher than it was on April 2. This day was called Trump’s “Liberation Day” because he announced high taxes on goods from other countries. This caused people to worry about a possible recession that the country might cause itself.

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

Crude oil prices experienced a decline following an upward trend on Monday, with the U.S. benchmark variety decreasing by 22 cents to $61.73 per barrel, and Brent crude, considered the global standard, falling by 25 cents to $64.72 per barrel.

On Monday, the U.S. dollar appreciated significantly against major currencies such as the euro, Japanese yen, and Swiss franc; however, by Tuesday morning, it had depreciated against the yen, trading at 147.98 compared to the previous 148.47, while simultaneously strengthening against the euro, reaching $1.1113 from $1.1088.

This moratorium between the U.S. and China comes after an agreement declared last week by the United States and the United Kingdom, which aims to reduce tariffs on numerous U.K. imports to 10%, though this process is expected to take several weeks.

Later this week, forthcoming economic reports, such as those detailing inflation and the confidence levels of U.S. consumers, may reveal the extent of economic damage wrought by tariff-related uncertainty.

Numerous retailers experienced an increase in value, largely because a significant portion of their inventory originates from China and various other Asian countries; for instance, Best Buy's value surged by 6.6%, and Amazon's by 8.1%.

Smaller U.S. enterprises, whose viability is more closely tied to the vigour of the domestic economy than that of their larger counterparts, experienced considerable increases, as evidenced by the Russell 2000 index's ascent of 3.4%.

Apparel firms significantly dependent on Chinese suppliers also saw gains, with Lululemon jumping 8.7% and Nike increasing 7.3%.