Asian markets rallied after Trump announce 90-day pause on tariffs, Indian markets closed for Mahavir Jayanti

Japan's Nikkei 225 index jumped over 8.34 per cent, while Taiwan's weighted index gained more than 9 per cent at the time of reporting. South Korea's KOSPI index also rose sharply, climbing over 5 per cent.

Hong Kong's Hang Seng index was up around 4 per cent. However, the Indian stock markets remained closed on Thursday due to the public holiday of Shri Mahavir Jayanti.

Despite the temporary relief for some countries, the trade war between the US and China continued to escalate. On Wednesday (local time), President Trump announced an immediate hike in tariffs on Chinese goods to 125 per cent. This move came in response to China raising its tariffs on US goods from 34 per cent to 84 per cent, starting April 10.

At the same time, Trump said he would reduce tariffs for the 75 countries currently engaged in trade talks with the United States, offering a 90-day break and a lower reciprocal tariff structure. India is among these countries.

"Based on the lack of respect that China has shown to the World's Markets, I am hereby raising the tariff charged to China by the United States of America to 125 %, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the USA and other Countries are no longer sustainable or acceptable," Trump said on the social media platform Truth Social.

"Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!" he added.