Stock markets LIVE: FTSE forecast to surge as Nikkei 225 climbs 8.5%

Asian markets have responded positively to the news that Donald Trump will pause his "Liberation Day" tariffs for most countries except China. Overnight, Japan's Nikkei share average was up 8.2% while the Hang Sang Tech Index gained 3.1%.

Announcing the pause on Truth Social, the US President said that the short-term reprieve was for the "more than 75 countries" who had not retaliated against his tariffs "in any way." The stock market reaction, coupled with a fightback by China, sparked fears of a global trade war and recession in the United States.

Trump, however, has not softened his approach to China, increasing their tariff to 125% on imported goods "effective immediately".

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