Closing Bell 13th May: Markets rally on 90 day Trade Deal Truce. Life 360 jumps on earnings

Asia-Pacific markets traded mixed on Tuesday following Wall Street’s sharp rally, spurred by a surprise U.S.–China trade agreement that includes a 90-day tariff pause and a significant 115-point reduction in reciprocal tariffs.

Nomura analysts upgraded Chinese equities to a “tactical overweight,” citing the unexpectedly large tariff rollback as a catalyst for near-term risk appetite. “This reduction is much larger than anticipated and offers meaningful relief for global, including Asian, equities,” wrote Asia-Pacific equity strategist Chetan Seth. To fund the China upgrade, Nomura trimmed its overweight position in India.

Despite the trade optimism, Hong Kong markets reversed prior gains. The Hang Seng Index dropped 1.74%, while the Hang Seng Tech Index slid 3.06%. Mainland China’s CSI 300 was little changed.

Indian equities also pulled back after Monday’s strong rally, which followed ceasefire optimism with Pakistan. The Nifty 50 declined 0.34%, and the BSE Sensex lost 0.39%.

Japan outperformed, with the Nikkei 225 climbing 1.71% and the Topix advancing 1.28%. South Korea’s Kospi was flat, while the Kosdaq rose 1.15%, supported by strength in small-cap stocks.