Asia markets and US futures are trading up after days of pain

• Asian markets and US futures are up after days of meltdown as countries seek tariff talks with Washington.
• Japan may get priority in tariff negotiations, Treasury Secretary Scott Bessent said.
• Analysts are warning of potential market volatility and long-term impacts on US company valuations.

Asian markets and US stock futures are trading higher after days of bloodshed on US President Donald Trump's "Liberation Day" tariff shock.

The gains come on the back of news that countries are now lining up to negotiate the tariffs with Trump's administration.

Treasury Secretary Scott Bessent told Fox Business on Monday that Japan is likely to get priority for a deal as they came forward "very quickly."

Indonesian stocks were slammed on the first trading day after weeklong public holidays. Taiwanese shares remain weak.

At mid-day, Asia's major indexes were mixed:

• Japan's Nikkei 225: +5% at 12:59 p.m. local time
• South Korea's Kospi: +0.5 at 12:54 p.m.
• Hong Kong's Hang Seng Index: +1.6% at 12:05 p.m.
• China's CSI 300: +1.0% at 11:30 a.m.
• Australia's ASX 200: +1.9% at 2:15 p.m.
• Taiwan's Taiex: -4.9% at 12:16 p.m.
• Indonesia's JCI: -7.8% at 11:15 a.m.

Meanwhile, US after-market trading ticked up after days of pain, including a disastrous Monday open.

US futures were higher at 12:09 a.m. ET:

• S&P 500 futures: +1.4% at 5,167.25
• Dow futures: +1.8% (up 678) at 38,843
• Nasdaq 100 futures: +1.2% at 17,764.75

Analysts are wary following after trillions of dollars in stock market losses since Trump announced sweeping tariffs against the world last Wednesday.

Yeap Jun Rong, an IG market strategist, wrote in a note on Tuesday that markets have sold down so much over the last few days that there could be a massive swing in sentiment on even "the slightest positive news" about the tariffs.

"For now, some calm has descended with the VIX pulling back from its recent high, as countries head into the 'negotiating phase' for tariffs," he wrote, referring to the Chicago Board Options Exchange's CBOE Volatility Index.

Volatility reigned in the US markets on Monday, with the S&P500 officially entering bear market territory only to spike 8.5% momentarily due to fake news that Trump was considering a 90-day pause for the tariffs. The index ended the day 0.23% lower.

Among the risks is a further escalation between the US and China, which have slapped retaliatory tariffs on each other recently and issued fresh tariff threats, indicating neither side is backing down.

Some analysts say investors should consider the long-term upheaval Trump's tariffs could bring to company profits and valuation, particularly in the US.

"Decades of outsized market gains and high household exposure to equities mean negative wealth effects will be stronger in America, as is the potential for valuation downgrades and foreign fund repatriation," wrote analysts at Global Data.TS Lombard in a Monday note.