The US president's comments that he would hold last-minute talks with Chinese counterpart Xi Jinping to pause levies on goods from the world's number-two economy provided extra optimism.
Markets from Japan to New York were sent tumbling Monday after news at the weekend that Trump had signed off 25 percent duties against Mexico and Canada, fanning concerns for the stuttering global economy.
However, hours before the tariffs were due to take effect, Trump said he had struck deals with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum on immigration and fentanyl, and would postpone the measures for a month.
Talks on final deals would continue with both countries, he added.
The Republican added that he would hold talks with Beijing "probably in the next 24 hours" to avoid new 10 percent tariffs on Chinese imports.
The three countries are the United States' three biggest trading partners and had warned they would retaliate.
News of the deals saw the Mexican peso surge more than three percent -- having tumbled to a three-year low on Monday -- while the Canadian dollar rallied more than one percent.
Asian stock markets also advanced, with Hong Kong up more than three percent, while Tokyo, Seoul and Manila were all more than one percent higher. Sydney, Singapore, Wellington and Taipei were also in the green.
However, the euro remained under pressure after Trump warned the European Union would be next in the firing line, while he did not rule out tariffs against Britain.
The "pushing back of tariffs on Mexico serves as a reminder of the cycle we have entered: tariff announcements are followed by calls and negotiations, declarations of victory, and then the cycle begins anew", said IG market analyst Tony Sycamore.
"Ultimately the path leads to higher tariffs, slower growth, higher inflation and less certainty for risk takers and equities."
The volatile start to February on markets follows their rollercoaster ride last week after China's DeepSeek unveiled a cheaper artificial intelligence model rivalling those of US tech giants, sparking quesions over the vast sums invested in the sector in recent years.
"One thing we can say for sure. Markets are going to remain subject to massive headline risk in coming hours... days... and years," Ray Attrill at National Australia Bank warned.
Gold spot prices held gains after spiking to a new record high of $2,830.74 on Monday, having retreated from last week's all-time peak owing to the stronger dollar and as traders sought out the metal as a safe haven from uncertainty.
- Key figures around 0230 GMT -
Tokyo - Nikkei 225: UP 1.6 percent at 39,140.41 (break)
Hong Kong - Hang Seng Index: UP 3.1 percent at 20,846.94
Shanghai - Composite: Closed for a holiday
Euro/dollar: UP at $1.0320 from $1.0302 on Monday
Pound/dollar: UP at $1.2419 from $1.2407
Dollar/yen: UP at 155.14 yen from 154.80 yen
Euro/pound: UP at 83.10 pence from 83.03 pence
West Texas Intermediate: DOWN 1.1 percent at $73.36 per barrel
Brent North Sea Crude: DOWN 0.6 percent at $75.50 per barrel
New York - Dow: DOWN 0.3 percent at 44,421.91 (close)
London - FTSE 100: DOWN 1.0 percent at 8,583.56 (close)
dan/sco
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