Asian shares regain ground as Trump faces pushback on tariffs

Asian shares regained ground on Tuesday after US President Donald Trump faced growing pressure from political allies to pull back from proposed steel and aluminum tariffs, easing investor worries about an imminent trade war.

Sentiment was also supported by receding risk aversion in Europe with the euro gaining support from the creation of a coalition government in Germany and the impact of Italy’s inconclusive election results limited to a mild sell-off in domestic bonds and stocks.

European shares are expected to gain, with financial spread betters tipping Britain’s FTSE and France’s Cac to rise 0.5 per cent and Germany’s Dax 0.8 per cent, reports Reuters from Tokyo.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.5 per cent, snapping five straight days of losses, while Japan’s Nikkei jumped 1.8 per cent from a five-month low, reports Reuters.

Korean shares have erased all the losses they had taken after Trump’s announcement even though the country is seen as being among the worst affected in region by the tariffs due to its big steel exports to the United States.

US S&P500 have also now recouped all the losses incurred after Trump’s tariff plan.