Portugal Colonial - Asian stocks crack higher as Trump delays painful tariffs

Equities surged across the board, tracking a blistering performance on Wall Street, after the US president said he would delay for 90 days measures announced last week that set off a firestorm on trading floors and sparked warnings of a global recession.

Trump said he would keep in place a basic levy of 10 percent on dozens of countries but upped the ante in his brutal trade war with superpower rival China by hitting it even harder after it retaliated in kind at the weekend.

Trump made the decision because he said investors were "jumping a little bit out of line" as markets collapsed and US Treasuries -- considered the safest option in times of crisis -- were also showing signs of cracking on concerns about the world's top economy.

People "were getting yippy, a little bit afraid", he added, referring to a term in sports to describe a loss of nerves.

The extra tariffs on Beijing, however, were "based on the lack of respect that China has shown to the world's markets", Trump said.

The president denied he had made a U-turn, telling reporters that "you have to be flexible".

Asian traders welcomed the move, ramping up equities throughout the region.

Hong Kong rallied more than four percent -- a third day of gains after collapsing more than 13 percent on Monday in its worst day since 1997 during the Asian financial crisis. Shanghai gained more than one percent.

The two markets have been given extra support by optimism that Chinese officials will unveil fresh stimulus to support the economy in light of the tariff measures.

Official data showing another drop in consumer prices last month added to those hopes.

- 'Fear to euphoria' -

Tokyo's Nikkei surged more than eight percent, Seoul and Singapore each piled on more than five percent, and Sydney and Jakarta more than four percent.

Taipei's 9.3-percent gain was its best rise on record -- after Monday's 9.7-percent drop represented its worst fall.

Shares in Vietnam, which was facing some of the heftiest tariffs, jumped 6.5 percent, while Manila and Wellington were also deep in the green.

Tech firms were the standout performers, with Sony, Sharp, Panasonic and SoftBank chalking up double-digit gains, while airlines, car makers and casinos also enjoyed strong buying.

Apple suppliers posted blockbuster rallies -- Hong Kong-listed AAC Technologies surged 23 percent and in Taiwan, Hon Hai added almost 10 percent.

"Asia markets are flipping the switch -- from fear to euphoria -- as Trump throws a 90-day lifeline, pausing the reciprocal tariff barrage," said Stephen Innes at SPI Asset Management.

"The president's post nodded to the 'yippy' reaction to his historic hikes, and honestly, that sums it up.

"We just witnessed one of the all-time bouncebacks -- and now, we look for Asia investors, much like their North American counterparts, to step in and buy the 'yips'."

US Treasury yields also edged down, after a successful auction of $38 billion in notes, said Briefing.com.

That eased pressure on the bond market, which had fanned worries that investors were losing confidence in the United States.

The tumult caused by Trump's trade war is also causing a headache for the US Federal Reserve as it tries to decide whether to cut interest rates to protect the economy, or keep them elevated to ward off the inflation many say tariffs will fuel.

Minutes from the central bank's March meeting, released Wednesday, showed members were concerned that "the announced or planned tariff increases were larger and broader than many of their business contacts had expected".

That was before the president unveiled his widespread duties of up to 50 percent on friend and foe -- now paused until July.

Some decision-makers noted that they "may face difficult tradeoffs if inflation proved to be more persistent while the outlook for growth and employment weakened", the minutes showed.

Oil prices edged down after a much-needed bounce of more than four percent on Wednesday. Still, both main contracts remain under pressure amid concerns about the global economy and its impact on demand.

Gold also rallied around two percent, while bitcoin put on more than six percent.

- Key figures around 0230 GMT -

Tokyo - Nikkei 225: 8.3 percent at 34,353.17 (break)

Hong Kong - Hang Seng Index: UP 4.2 percent at 21,108.06

Shanghai - Composite: UP 1.6 percent at 3,236.06

Dollar/yen: DOWN at 147.00 yen from 147.82 yen on Wednesday

Euro/dollar: UP at $1.0970 from $1.0948

Pound/dollar: UP at $1.2825 from $1.2810

Euro/pound: UP at 85.54 pence from 85.45 pence

West Texas Intermediate: DOWN 0.6 percent at $61.98 per barrel

Brent North Sea Crude: DOWN 0.8 percent at $64.96 per barrel

New York - Dow: UP 7.9 percent at 40,608.45 (close)

London - FTSE 100: DOWN 2.9 percent at 7,679.48 (close)

P.Queiroz--PC