Asian stocks rallied the most in more than two years on Thursday as U.S. President Donald Trump paused most of his sweeping reciprocal tariffs for 90 days to allow more time for negotiations, but raised the levies on China to 125 percent, further escalating a high-stakes confrontation between the world's two largest economies.
The dollar weakened, helping metals halt the longest run of losses in 25 years. Gold rose over 1 percent to $3,120 per ounce after posting its biggest one-day gain in 18 months in the wake of abrupt shifts in U.S. tariff policy. Oil resumed losses after rebounding from a four-year low in the previous session.
Chinese stocks advanced as weak CPI and PPI data and tariff-related worries fueled expectations for more stimulus. The benchmark Shanghai Composite index climbed 1.16 percent to 3,223.64 ahead of a meeting of top leaders to discuss additional economic measures.
The onshore yuan fell to the weakest level since 2007 on increased bets for monetary easing measures by the People's Bank of China to support the economy.
Leading investment bank Goldman Sachs revised China real GDP growth forecasts for 2025 and 2026 downward to 4.0 percent and 3.5 percent, saying the easing measures that China may resort to are unlikely to fully offset the hit due to tariffs.
Hong Kong's Hang Seng index jumped 2.06 percent to 20,681.78 as investors pinned their hopes on talks between the world's two largest economies and policy support from state firms.