Stock market today: Asian shares climb as Canada, Mexico tariffs are postponed and China retaliates

HONG KONG (AP) — Asian shares climbed on Tuesday even as U.S. tariffs on China came into effect and China imposed retaliatory measures on the United States, including tariffs on coal and liquefied natural gas as well as an antitrust probe into Google.

Elsewhere, shares appeared to slip, with France’s CAC 40 dipping 0.09% in early trading to 7,861.91, while Germany’s DAX dropped 0.06% to 21,415.71. Britain’s FTSE 100 slid 0.27% to 8,560.54. The U.S.'s Dow futures was down 0.28% at 44,442.00, while the S&P 500 futures slipped 0.25% to 6,007.00.

Stocks across Asia-Pacific were mostly up. The Hang Seng Index in Hong Kong closed up 2.83% to 20,789.96. Japan’s benchmark Nikkei 225 was up 0.72% to 38,798.37, while South Korea’s Kospi grew 1.13% to 2,481.69. Australia’s S&P/ASX 200 declined 0.06% to 8374.00.

The White House earlier said President Donald Trump would speak with Chinese President Xi Jinping as soon as this week, sparking hopes that a deal could be reached that could avert a broader trade war.

Trump last week imposed 10% tariffs on Chinese goods that came into effect on Tuesday. Minutes after the tariffs took effect, China launched a flurry of retaliatory countermeasures, including a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil, agricultural machinery and large-engine cars imported from the U.S.

China's tariffs are scheduled to go into effect next Monday.

Beijing also launched an antitrust probe into Google and placed two American companies on an unreliable entities list: PVH Group, which owns Calvin Klein and Tommy Hilfiger, and Illumina, a biotechnology company with offices in China. The listing bars them from engaging in China-related import or export activities and from making new investments in the country.

Earlier, Asian shares had risen following news that Canada and Mexico had negotiated with the U.S. for a one-month reprieve on 25% tariffs.

Analysts said that early trading Tuesday was driven by the postponement of tariffs on those countries.

“The sharp pullback in the U.S. dollar, along with tariff relief hopes, are likely to see markets retain their gains, barring any unexpected souring in U.S.-China talks ahead,” said Yeap Jun Rong, market strategist at IG in a note.

Yeap said that the postponement of the tariffs provides immediate relief for risk sentiments and underscores "Trump’s willingness to negotiate, potentially with tariff moves as bargaining chips rather than firm policy decisions.”

The S&P 500 fell 0.8% Monday, while the Dow Jones Industrial Average lost 122 points, or 0.3%, and the Nasdaq composite sank 1.2%. U.S. stocks had pared losses after Mexico said it had a monthlong reprieve from tariffs imposed by Trump.

In energy trading, benchmark U.S. crude declined $1.39 to $71.77 a barrel. Brent crude, the international standard, lost 92 cents to $75.04 a barrel.

In currency trading, the dollar edged up to 155.35 Japanese yen from 154.75. The euro cost $1.0341, down from $1.0345.