BANGKOK (AP) -- Asian shares were mostly higher Thursday, tracking a rebound on Wall Street after President Donald Trump pulled back on some of his tariffs hikes.
U.S. futures were little changed, while benchmarks surged in Japan and China.
Trump's decision to give a one-month exemption for U.S. automakers on his 25% tariffs for Mexican and Canadian imports raised hopes he may avoid a worst-case trade war that grinds down economies and sends inflation higher.
Tokyo's Nikkei 225 index gained 0.9% to 37,759.95. Japanese automakers' shares surged in U.S. trading, though Toyota Motor Corp. fell back in Tokyo trading. losing 0.9%. Honda Motor Corp. gained 2% and Suzuki Motor Corp. was up 1%.
Hong Kong's Hang Seng index jumped 2.6% to 24,216.93 following Chinese government reports to the annual legislative session that showed a greater resolve by Beijing to boost consumer spending and other domestic demand.
The Shanghai Composite index advanced 1.1% to 3,377.22.
South Korea's Kospi jumped 0.7% to 2,577.31, while the S&P/ASX 200 in Australia slipped 0.5% to 8,100.20.
Taiwan's Taiex shed 0.4%, while the SET in Bangkok also lost 0.4%.
On Wednesday, gains for Ford Motor and GM stocks helped lead Wall Street higher.
The S&P 500 rose 1.1% to 5,842.63, while the Dow Jones Industrial Average added 1.3% to 43,006.59. The Nasdaq composite was 1.6% higher, closing up 1.5% at 18,552.73.
Trump said he was granting a one-month exemption for U.S. automakers on his 25% tariffs for Mexican and Canadian imports after talking with Ford, General Motors and Stellantis, which owns Chrysler. That sent relief through Wall Street, and Ford's and General Motors' stock both jumped more than 5% to help lead a widespread rally across the market.
The worry has been that such tariffs would not only hurt profits for companies but also jack up prices for cars and other bills for U.S. households that are already struggling with still-high inflation. The hope is that Trump is using the threat of tariffs as a negitating tool and ultimately may institute less painful moves for the economy and global trade if he can win what he wants.
Trump did not roll back all of the tariffs he announced on the United States' largest trading partners, including on China. He said in an address before Congress Tuesday night that he's going ahead with additional tariffs on track to go into effect on April 2.
He has upped uncertainty in markets already reeling after he said Monday that there was no more room for negotiations. The higher tariffs effect Tuesday, causing the U.S. stock market to tumble.
Whatever the outcome, just the threat of tariffs has hit U.S. households and businesses, with consumer confidence souring sharply because of expectations they will fuel inflation. With all the changes coming from Washington, U.S. manufacturers say their growth is approaching stall-speed amid worries about tariffs.
Reports Wednesday gave a mixed read on the U.S. economy. A report from ADP suggested U.S. employers pulled back sharply on their hiring last month, a possible warning signal ahead of a more comprehensive jobs report due out Friday from the U.S. Labor Department.
A separate report said growth for U.S. finance, real estate and other businesses in the services sector is better than economists expected. But businesses also said in the survey they're confronting "chaos" and uncertainty because of tariffs, according to the Institute for Supply Management.
A recent stream of weaker-than-expected reports on the U.S. economy has raised the possibility of a worst-case scenario known as "stagflation." It's something that doesn't happen often, where the economy is stagnating and inflation is high.
The U.S. economy closed out last year running at a solid pace. If it weakens, the Fed can cut its main interest rate to make borrowing easier and goose growth. But rate cuts push inflation higher. It could be boxed in if prices for eggs and other everyday items surge because of tariffs.
In other dealings early Thursday, U.S. benchmark crude oil added 41 cents to $66.72 per barrel, while Brent crude, the international standard, also gained 41 cents, to $69.71 per barrel.
The U.S. dollar rose to 149.11 Japanese yen from 148.89 yen. The euro climbed to $1.0803 from $1.0790.
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AP Business Writers Stan Choe and Damian Troise contributed.
