Tokyo, Apr 10 (AP) Asian shares surged in Thursday trading, with Japan's benchmark jumping more than 2,000 points almost immediately after the Tokyo exchange opened, as investors welcomed President Donald Trump's decision to back off on most of his tariffs.

Analysts had expected the regional comeback given that US stocks had one of their best days in history Wednesday on a euphoric Wall Street, where investor hopes had run high that Trump would tone down the tariffs.

On Thursday, Japan's benchmark Nikkei 225 jumped 8.2% in morning trading to 34,302.05, zooming upward as soon as trading began. Australia's S&P/ASX 200 soared 4.7% to 7,721.40. South Korea's Kospi gained 4.9% to 7,721.40. Hong Kong's Hang Seng added 2.8% to 20,821.48. The Shanghai Composite edged up 0.6% to 3,207.35.

Stephen Innes, managing partner at SPI Asset Management, called the reaction “from fear to euphoria”.

“It's now a manageable risk, especially as global recession tail bets get unwound, and most of Asia's exporters breathe a massive sigh of relief,” he said, referring to the tariffs on China, which Trump has kept.

On Wall Street, the S&P 500 surged 9.5%, an amount that would count as a good year for the market. It had been sinking earlier in the day on worries that Trump's trade war could drag the global economy into a recession. But then came the posting on social media that investors worldwide had been waiting and wishing for.

“I have authorised a 90 day PAUSE,” Trump said, after recognising the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs.

Treasury Secretary Scott Bessent later told reporters that Trump was pausing his so-called reciprocal' tariffs on most of the country's biggest trading partners, but maintaining his 10% tariff on nearly all global imports.

China was a huge exception, though, with Trump saying tariffs are going up to 125% against its products. That raises the possibility of more swings ahead that could stun financial markets. The trade war is not over, and an escalating battle between the world's two largest economies can create plenty of damage. US stocks are also still below where they were just a week ago, when Trump announced worldwide tariffs on what he called “Liberation Day”.

But on Wednesday, at least, the focus on Wall Street was on the positive. The Dow Jones Industrial Average shot to a gain of 2,962 points, or 7.9%. The Nasdaq composite leaped 12.2%. The S&P 500 had its third-best day since 1940.

The relief came after doubts had crept in about whether Trump cared about the financial pain the US stock market was taking because of his tariffs. The S&P 500, the index that sits at the centre of many 401(k) accounts, came into the day nearly 19% below its record set less than two months ago.

That surprised many professional investors who had long thought that a president who used to crow about records for the Dow under his watch would pull back on policies if they sent markets reeling.

Wednesday's rally pulled the S&P 500 index away from the edge of what's called a “bear market”. That's what professionals call it when a run-of-the-mill drop of 10% for US stocks, which happens every year or so, graduates into a more vicious fall of 20%. The index is now down 11.2% from its record.

Wall Street also got a boost from a relatively smooth auction of US Treasurys in the bond market Wednesday. Earlier jumps in Treasury yields had rattled the market, indicating increasing levels of stress. Trump himself said Wednesday that he had been watching the bond market “getting a little queasy.” Analysts say several reasons could be behind the rise in yields, including hedge funds and other investors having to sell their Treasury bonds to raise cash in order to make up for losses in the stock market. Investors outside the United States may also be selling their US Treasurys because of the trade war. Such actions would push down prices for Treasurys, which in turn would push up their yields.

Regardless of the reasons behind it, higher yields on Treasurys add pressure on the stock market and push upward on rates for mortgages and other loans for US households and businesses.

The moves are particularly notable because US Treasury yields have historically dropped — not risen — during scary times for the market because the bonds are usually seen as some of the safest possible investments. This week's sharp rise had brought the yield on the 10-year Treasury back to where it was in late February.

After approaching 4.50% in the morning, the 10-year yield pulled back to 4.34% following Trump's pause and the Treasury's auction. That's still up from 4.26% late Tuesday and from just 4.01% at the end of last week.

In energy trading, benchmark US crude fell 56 cents to $61.79 a barrel. Brent crude, the international standard, declined 74 cents to $64.74 a barrel.

In currency trading, the US dollar fell to 146.83 Japanese yen from 147.38 yen. The euro cost $1.0980, up from $1.0954. (AP) SCY SCY