Even China's market is up after Trump paused his trade war

• Asia markets surged after President Donald Trump paused his trade war for 90 days.
• Trump's pause came after a rout in US Treasurys.
• China did not get a reprieve but stocks are still up on state support.

Asia markets surged early in the global trading day on Thursday after President Donald Trump announced he was suspending his trade war for 90 days.

Here's where major indexes in Asia stood at close:

• Nikkei 225: +9.1%
• Kospi: +6.6%
• ASX 200: +4.5%
• Hang Seng Index: +1.9%
• CSI 300: +1.3%
• Taiex: +9.3%

The gains came after Trump paused most reciprocal tariffs while keeping the baseline 10% rate in place.

However, the American leader hiked tariffs on Chinese imports to 125% in an escalating trade war between the two mega economies.

Chinese stock markets were still higher on Thursday, but state-backed buying has been supporting China's markets over the last few days. Investors are also expecting stimulus from Beijing.

"The government will likely wait for the trade data and react with fiscal stimulus," wrote Zhiwei Zhang, the president and chief economist of Pinpoint Asset Management in Hong Kong, on Thursday.

US stock futures were lower at 3:45 a.m. ET on after a stunning rally on Wall Street:

• S&P 500 futures: -1.7% at 5,398
• Dow futures: -1.3% at 40,312
• Nasdaq 100 futures: -2.1% at 18,890.75

Oil futures were about 2% lower at 3:50 a.m. ET reflecting persistent concerns about a potential downturn:

• US benchmark West Texas Intermediate oil futures: around $61 a barrel
• International benchmark Brent: around $64 a barrel

Analysts warned that the 90-day pause on tariffs is just that — a pause while negotiations are underway. The baseline 10% tariff rate is also still the highest in decades.

"While there has been understandable relief as evidence of a Trump put reemerged following the extreme market conditions that we highlighted yesterday morning, the genie is still out of the bottle on policy unpredictability," wrote Deutsche Bank analysts in a Thursday note.

"Perhaps most crucially, we are currently still on course for a disorderly economic decoupling between the world's two largest economies, with no immediate signs of either US or China backing down," they wrote.

Trump's decision followed a rout in US Treasurys amid what some call the "Sell America" trade.

A sell-off in Treasurys means that yields rise, which would typically increase interest rates. This is at odds with Trump's goal of lowering borrowing costs for Americans.

A US Treasury debt auction of $39 billion in benchmark 10-year notes on Wednesday drew better-than-expected demand, alleviating some concerns after a weak auction of three-year notes a day earlier.

US Treasurys rose on Thursday as their yields fell.