Asia markets mostly up as Trump hints more tariff talks possible

Analysts point to carrot-and-stick play, do not rule out US trade deals with countries

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Asian shares mostly rose on July 8 as US President Donald Trump left the door open for additional trade talks, providing a reprieve to markets after imposing new tariff rates on several countries.

After announcing higher levies on several countries, Mr. Trump said he was still open to more negotiations and pushed off increased duties until at least Aug. 1. He also teased the possibility of more delays, saying the notifications were "not 100 per cent firm."

"This is carrot-and-stick play - stretch the deadline, tighten the grip, and remain focusing on a deal to be made," said Ms. Hebe Chen, a market analyst at Vantage Markets in Melbourne. "Despite the theatrics, it's not far from market expectations, and a deal within two weeks still looks likely."

Singapore's Straits Times Index closed up 0.4 per cent. The country, which was hit with a 10 per cent baseline tariff in April, has not yet heard from the US. White House press secretary Karoline Leavitt said on July 7 that additional letters will be sent in the coming days.

Japan's Nikkei index rose 0.26 per cent, Hong Kong's Hang Seng Index gained 1.09 per cent and China's Shanghai Composite added 0.7 per cent. However, markets were down in Malaysia, Taiwan and Thailand.

South Korea's Kospi index jumped 1.8 per cent after the government said it will fix rules and regulations to address US demand to lower non-tariff barriers.