Asian stock markets exhibited varied performance on Tuesday, as the initial enthusiasm regarding the 90-day trade war ceasefire between the United States and China diminished, prompted by analysts' cautions that President Donald Trump's policies could still undergo rapid alterations.

In a joint statement, the United States announced a reduction in tariffs on Chinese goods, lowering them from a peak of 145% to 30%. Concurrently, China declared a decrease in its tariffs on U.S. goods, from 125% to 10%. This affords additional time for further deliberations subsequent to the weekend's negotiations in Geneva, Switzerland, which the U.S. delegation characterized as having achieved "substantial progress."

The outcome exceeded most forecasts, providing reassurance to investors, according to Stephen Innes of SPI Asset Management.

He said in a commentary that although this diplomacy was clearly planned and controlled, it looks good and has real effects. It shows that even this government knows that constant tariffs are bad for the economy.

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

Beijing's ongoing resentment towards the trade dispute is evident. Speaking to officials from China and Latin America on Tuesday, Chinese leader Xi Jinping reiterated Beijing’s position that trade conflicts yield no victors and that "intimidation or dominance ultimately results in self-imposed isolation."

Tokyo's Nikkei 225 index advanced significantly, climbing 1.6% to reach 38,232.21, with automotive manufacturers experiencing notable gains, including a 3.7% rise for Toyota Motor Corp. and a 4.3% increase for Suzuki Motor Corp.

Following reports from Japan's public broadcaster, NHK, that Nissan Motor Co. intended to dismiss over 10,000 employees, thereby increasing the total number of redundancies to 20,000 as part of its restructuring plan, the company's stock price rose by 3.4%. Nissan was scheduled to disclose its financial performance for the previous fiscal year later that day.

The Kospi index in South Korea remained largely stable, closing at 2,606.46.

Hong Kong’s Hang Seng index, which had surged 3% the previous day following the Sino-US agreement to halt and reduce tariffs, declined 1.5% to 23,189.15 amid significant divestment in technology stocks.

The Shanghai Composite index saw a marginal increase of 0.2%, reaching 3,376.22, while Taiwan’s Taiex experienced a significant surge of 1%.

Australia's S&P/ASX 200 index advanced by 0.5%, reaching 8,274.70 points.

On Monday, the world’s two leading economies reached an agreement to reduce the majority of their respective tariffs.

This development propelled the S&P 500 to a 3.3% increase, positioning it within 5% of its record high established in February. Although it had dropped close to 20% below that peak, it rebounded last month, fueled by optimism that President Donald Trump would reduce tariffs following the conclusion of trade agreements with other nations.

The main index in many 401(k) accounts is now higher than it was on April 2, which Trump called "Liberation Day." On that day, he announced major tariffs around the world, which caused worries about a recession that could have been avoided.

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

Following a rise on Monday, oil prices experienced a decline, with the U.S. benchmark crude surrendering 22 cents to settle at $61.73 per barrel, while Brent crude, the global standard, saw a decrease of 25 cents, reaching $64.72 per barrel.

The U.S. dollar exhibited strength on Monday across various currencies, such as the euro, Japanese yen, and Swiss franc. By early Tuesday, however, the dollar's value against the Japanese yen had slightly diminished, trading at 147.98 yen, a decrease from 148.47 yen. Conversely, it appreciated relative to the euro, rising to $1.1113 from $1.1088.

The temporary halt in U.S.-China trade relations occurred after the United States and the United Kingdom reached an agreement last week to reduce tariffs on numerous U.K. imports to 10%, a process expected to take several weeks to implement fully.

Upcoming economic data releases this week, specifically concerning inflation and consumer confidence in the U.S., may reveal the extent of the economic disruption attributed to tariff-related unpredictability.

Numerous retailers experienced growth, largely due to their reliance on goods imported from China and other Asian countries; for example, Best Buy saw a significant increase of 6.6%, and Amazon's stock rose substantially by 8.1%.

Smaller U.S. enterprises, whose prosperity is more contingent on the vigor of the domestic economy than that of their larger competitors, experienced significant advances, with the Russell 2000 index climbing by 3.4%.

Garment manufacturers heavily reliant on sourcing materials from China also saw gains, with Lululemon ascending by 8.7% and Nike increasing by 7.3%.