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A Chinese flag flies high over The Bund.
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Asia-Pacific markets were set to climb Monday as U.S. President Donald Trump paused tariffs on some consumer electronics, boosting risk sentiment.
Trump exempted smartphones and computers as well as other devices and components such as semiconductors from his new "reciprocal" tariffs, according to a U.S. Customs and Border Protection guidance issued late Friday.
However, Trump and Commerce Secretary Howard Lutnick suggested Sunday that the exemptions were not permanent, stirring up more uncertainty.
Trump said in a Truth Social post that these products were still "subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff 'bucket.'"
Several countries in the region are also preparing for trade negotiations with the U.S. this week.
Trump is engaging in negotiations with countries including Vietnam, India, South Korea and Japan, and is prioritizing existing trading partners that are strategic to countering China, according to two people close to the White House, reports from Politico show.
Japan's top trade representative Akazawa Ryosei is slated to visit the U.S. this week for talks with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, according to local broadcaster NHK.
The country's benchmark Nikkei 225 was set to open higher, with the futures contract in Chicago at 34,080 while its counterpart in Osaka last traded at 33,720 against the index's Friday close of 33,585.58.
Futures for Hong Kong's Hang Seng index stood at 21,059 pointing to a stronger open compared to the HSI's close of 20,914.69 last Friday.
Meanwhile, Australia futures pointing to a higher open 7,678 compared with S&P/ASX 200 last close of 7,646.5.
— CNBC's Sean Conlon, Hakyung Kim and Pia Singh contributed to this report.
There's still 'mass uncertainty' despite Trump tariff exemption being 'right move,' according to Dan Ives
While the Trump administration's move to exempt smartphones, computers and semiconductors, among other electronic devices and components, from "reciprocal" tariffs may have been a win for Big Tech, the market could still be facing "mass uncertainty" around the president's tariff policy, says Wedbush analyst Dan Ives.
"The White House made the right move in our view as tech leaders and the overall tech industry knew that if these tariffs went into effect it would essentially be a shut off valve for getting products to the US consumers," Ives wrote in a note dated Sunday.
"[B]ut still there is mass uncertainty, chaos, and confusion about the next steps ahead with all focus on China tariff negotiations being front and center and any progress on this game of high stakes poker between Beijing and DC being crucial to the markets and the economy this week," he continued.
— Sean Conlon
English (US)