San Francisco Frontiers - Stocks zoom higher as Trump delays painful tariffs

The across-the-board gains tracked a blistering performance on Wall Street as the US president said he would delay for 90 days measures announced last week that set off a firestorm on trading floors and sparked global recession fears.

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.

China's own 84 percent retaliatory measures kicked in at 0401 GMT Thursday, later saying that the United States "goes against the whole world" with the measures and called on Washington to "meet halfway".

Trump made the decision to delay because investors were "jumping a little bit out of line", he said, after markets collapsed and US Treasuries -- considered the safest option in times of crisis -- showed signs of cracking.

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".

And his top trade advisor Peter Navarro said: "This will go down in American history as the greatest trade negotiating day we have ever had.

"We're in a beautiful position for the next 90 days, we've got over 75 countries that are going to come in and negotiate with us and what they're going to have to do, without fail, is they're going to have to lower their non-tariff barriers."

Trump's shock announcement on his Truth Social network sparked a buying frenzy as Asian and European investors chased beaten-down stocks.

"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.

"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'."

Tokyo's Nikkei surged more than nine percent, while Taipei's 9.3 percent gain was its best rise on record -- after Monday's 9.7 percent drop represented its worst fall.

- 'Fear to euphoria' -

Hong Kong rallied more than two 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 China will unveil fresh stimulus to support its economy.

Seoul, Singapore, Jakarta, Sydney, Saigon and Bangkok climbed between four and 6.6 percent. Manila and Wellington were also well in the positive territory.

In early trade, Paris and Frankfurt cruised more than six percent higher and London rallied more than four percent.

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.

Gold surged almost three percent around $3,120 -- around $50 short of its record touched last month -- thanks to the weaker dollar and as the uncertainty saw investors rush into the safe haven.

Chihiro Ota, at SMBC Nikko Securities, said: "What happens now? If the US takes hardline stance (in negotiations), then the market would be disappointed. If it turns out that they can engage in talks, then it may create a room for (an upswing)."

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 investors were losing confidence in the United States.

However, observers warn the China-US standoff could mark a step towards a disengagement between the world's top two economies.

"The escalation of the trade war between the US and China suggests that a full trade decoupling is increasingly likely," said Mali Chivakul, emerging markets economist at J. Safra Sarasin bank.

"Even if we may see a de-escalation later, a decoupling could still be the result."

Trump's trade war is also causing a headache for the Federal Reserve as it weighs cutting interest rates to protect the economy or holding them to ward off the inflation many say tariffs will fuel.

Minutes from its March meeting, released Wednesday, showed members felt they "may face difficult trade-offs if inflation proved to be more persistent while the outlook for growth and employment weakened".

Oil prices dropped after bouncing more than four percent Wednesday, though they remain under pressure amid concerns about the global economy and its impact on demand.

- Key figures around 0810 GMT -

Tokyo - Nikkei 225: 9.1 percent at 34,609.00 (close)

Hong Kong - Hang Seng Index: UP 2.1 percent at 20,681.78 (close)

Shanghai - Composite: UP 1.2 percent at 3,223.64 (close)

London - FTSE 100: UP 4.7 percent at 8,042.33

Dollar/yen: DOWN at 146.50 yen from 147.82 yen on Wednesday

Euro/dollar: UP at $1.1012 from $1.0948

Pound/dollar: UP at $1.2870 from $1.2810

Euro/pound: UP at 85.55 pence from 85.45 pence

West Texas Intermediate: DOWN 2.0 percent at $61.11 per barrel

Brent North Sea Crude: DOWN 2.1 percent at $64.12 per barrel

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

J.Martinez--SFF