Asian stock markets exhibited varied performance on Tuesday, as the initial optimism surrounding the 90-day trade war ceasefire between the United States and China dissipated, with analysts cautioning that President Donald Trump's policies remained subject to rapid alteration.

The United States and China said together that the US will reduce tariffs on Chinese goods to 30% from a high of 145%. China also said its tariffs on US goods will go down to 10% from 125%. This gives them more time for talks after the negotiations in Geneva, Switzerland, over the weekend, which the US described as making "substantial progress."

The results exceeded the majority of anticipations, providing reassurance to investors, Stephen Innes of SPI Asset Management noted.

In a commentary, he said that while this diplomacy was clearly planned, it looked good and had real effects. It shows that even this government knows that constant tariffs hurt the economy.

Nevertheless, significant obstacles persist in the ongoing negotiations between Beijing and Washington, and numerous Asian nations have yet to finalise agreements to mitigate tariffs on their own behalf.

Beijing's dissatisfaction with the trade conflict is still evident, with Chinese leader Xi Jinping reiterating to officials from China and Latin America that trade wars are detrimental to all parties and that "Intimidation or dominance inevitably results in self-imposed isolation."

Tokyo's Nikkei 225 index surged by 1.6%, reaching 38,232.21, with automakers demonstrating significant gains; specifically, Toyota Motor Corp.'s stock rose by 3.7%, and Suzuki Motor Corp.'s by 4.3%.

Nissan Motor Co.'s stock went up by 3.4% after Japan's national TV station NHK reported that the company plans to fire over 10,000 workers. This would mean a total of 20,000 job cuts as part of its plan to reorganize. The company was also going to share its financial results for the last business year later on Tuesday.

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

The Hang Seng index in Hong Kong, having experienced a 3% surge the previous day following announcements by Chinese and U.S. officials regarding a tariff truce and reduction, declined by 1.5% to 23,189.15 due to substantial selling pressure on technology stocks.

The Shanghai Composite index advanced marginally by 0.2% to 3,376.22, while Taiwan’s Taiex saw a substantial 1% increase.

The S&P/ASX 200 index in Australia ascended by 0.5%, reaching 8,274.70.

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

This spurred a 3.3% rise in the S&P 500, bringing it within 5% of the record high achieved in February, a level from which it had previously fallen by nearly 20%, before rebounding last month on expectations that President Donald Trump would reduce tariffs following trade agreements.

The main index for many 401(k) retirement plans is now higher than it was on April 2, which Trump called “Liberation Day.” On that day, he announced big taxes on goods from other countries, which made people worry about a possible recession caused by his own actions.

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

Following a Monday rally, oil prices declined, with U.S. benchmark crude falling 22 cents to $61.73 per barrel and Brent crude, the international standard, dropping 25 cents to $64.72 per barrel.

On Monday, the US dollar appreciated against several major currencies, including the euro, Japanese yen, and Swiss franc; however, by early Tuesday, the dollar had depreciated against the yen, trading at 147.98 compared to 148.47 the previous day, while simultaneously strengthening against the euro, reaching $1.1113 from $1.1088.

The U.S.-China détente occurred after the United States reached an agreement last week with the United Kingdom, which will reduce tariffs on numerous U.K. imports to 10%, although implementation will still take several weeks.

Upcoming economic reports, such as those on inflation and US consumer confidence, are expected to reveal the extent of the economic impact of tariff-related uncertainty.

Numerous retailers saw their stock prices increase, largely because a significant portion of their merchandise originates from China and various other Asian countries.

Smaller U.S. companies, whose prosperity is intrinsically tied to the performance of the domestic economy rather than that of their larger competitors, experienced substantial increases, evidenced by the Russell 2000 index's 3.4% surge.

Clothing manufacturers that obtain a large proportion of their materials from China also benefited.