Asian markets also saw a boom after America, uncertainty of trade war can put a break

China and America have agreed to put an end to their long trade war for 90 days. There was a boom in stock markets across the globe, including the markets of Asia, on Tuesday, due to this news. But experts are of the opinion that this peace may not last long since the policies of US President Donald Trump keep fluctuating suddenly. The two countries announced in a joint declaration that the duty on American goods imported from China would decrease from a maximum of 145% to 30% and the duty on goods exported from America to China would decrease from 125% to 10%. This 90-day ban is the outcome of successful negotiations that took place in Geneva.

Stephen Innis of SPI Asset Management said, 'This diplomatic move was pre-planned, but its signs are good. This has given the market confidence that heavy tariffs are having a bad effect on the economy, which is now being accepted by the US government itself.'

Japan's Nikkei 225 index jumped 1.8% to 38,326.37. Toyota Motor shares closed 3.7% higher and Suzuki Motor shares closed 4.6% higher. Nissan Motor rose 3.2%, although news came that it would lay off 10,000 more employees. In this episode, South Korea's Kospi index closed 0.2% higher at 2,612.30. Whereas, Hong Kong's Hang Seng index, which rose 3% on Monday, fell 0.7% to 23,374.06 on Tuesday. Heavy selling was seen in technology stocks. Meanwhile, China's Shanghai Composite Index was up 0.2%, while Taiwan's Taiex jumped 1.9%. Meanwhile, Australia's S&P Australian Securities Exchange Limited 200 Index rose 0.6% to 8,281.40.

The news of tariff reduction raised hopes of increased demand for crude oil, but its prices fell slightly on Tuesday. US crude oil fell 6 cents to $61.89 per barrel. Brent crude fell 8 cents to $64.88 per barrel.

The US dollar strengthened against major currencies like the euro, Japanese yen and Swiss franc. The dollar was trading at 147.98 yen on Tuesday (it was 148.47 yen on Monday). The dollar rose to $1.1101 against the euro, which was earlier $1.088. This indicated that the US Federal Reserve would not reduce interest rates as much as previously thought.

UBS chief economist Jonathan Pingel says that this deal can increase the growth rate of the US economy by 0.4%. In the first quarter of this year, the US economy had declined by 0.3%. However, the US and China are yet to reach an agreement on other issues. Also, many Asian countries have still not been able to negotiate their own trade deals.