Asian markets rallied on Monday as tensions over trade eased after U.S. President Donald Trump exempted electronics like computer chips and smartphones from high import duties. This move boosted U.S. futures and led to gains in European markets, with Germany’s DAX and France’s CAC 40 both posting significant increases. Asian shares also saw strong gains, with Japan’s Nikkei 225 and South Korea’s Kospi rising notably.

Technology companies experienced a surge in stock prices, with Tokyo Electron, Advantest, and Samsung Electronics all seeing gains. The positive market sentiment extended to Hong Kong’s Hang Seng and China’s Shanghai Composite index following a 12.4% surge in China’s exports in March.

Despite the temporary exemption on certain products, concerns over the ongoing trade war between the U.S. and China persist. The Chinese Ministry of Commerce called for a complete cancellation of reciprocal tariffs, warning of potential global economic repercussions. Australia’s S&P/ASX 200 also saw gains, while Taiwan’s Taiex fell slightly due to its reliance on high-tech exports.

The U.S. bond market signaled worry, with rising yields prompting selling of U.S. bonds. Gold prices rose as investors sought safe havens, and concerns about inflation loomed as Trump’s tariffs could impact the economy. Strong profit reports from major U.S. banks provided some positive momentum, with JPMorgan Chase, Morgan Stanley, and Wells Fargo all reporting better-than-expected earnings.

In early trading, U.S. crude oil prices dipped, while the U.S. dollar weakened against the Japanese yen and the euro strengthened. Overall, the global market outlook remains cautious amid ongoing trade tensions and economic uncertainties.