Hong Kong, Apr 14 (AP) Asian markets rallied on Monday as tensions over trade eased slightly after US President Donald Trump said electronics such as computer chips, smart phones and laptops would not be subject to the same high import duties as some other products.

US futures also gained after a rally Friday on Wall Street. However, a weaker US dollar and lower oil prices hinted at persisting worries over the direction of Trump's trade war.

In early European trading, Germany's DAX gained 1.9 per cent to 20,752.94, while the CAC 40 in Paris was up 1.8 per cent at 7,235.36. Britain's FTSE 100 added 1.6 per cent to 8,091.14.

The future for the S and P 500 gained 1.1 per cent while that for the Dow Jones Industrial Average was up 0.6 per cent.

Asian shares logged sturdy gains. Japan's Nikkei 225 rose 1.2 per cent to 33,982.36 and South Korea's Kospi gained 1 per cent to 2,455.89.

Shares in technology companies surged, with Tokyo Electron up 1.4 per cent and Advantest, a testing equipment maker, up 4.9 per cent. South Korea's biggest company, Samsung Electronics, gained 1.8 per cent.

Hong Kong's Hang Seng jumped 2.3 per cent to 21,397.20, while the Shanghai Composite index picked up 0.8 per cent to 3,262.81 after the government reported that China's exports surged 12.4 per cent in March from a year earlier.

US President Donald Trump said he was temporarily exempting smartphones, computers and other electronics from his tariffs after China announced Friday that it was boosting its tariffs on US products to 125 per cent in the latest tit-for-tat increase following Trump's escalations on imports from China.

The Chinese Ministry of Commerce said Trump's move was “a small step” toward fixing its wrongful action of what Trump calls reciprocal tariffs. It urged him to completely cancel them.

Rising tensions between the world's two largest economies could cause widespread damage and a possible global recession, even after Trump recently announced a 90-day pause on some of his tariffs for other countries, except for China.

Australia's S and P/ASX 200 added 1.3 per cent, closing at 7,748.60.

The Taiex fell 0.1 per cent in Taiwan, whose economy is heavily dependent on exports of computer chips and other high-tech goods after Trump said the new chip tariffs will be announced “over the next week”.

On Friday, the S and P 500 rose 1.8 per cent, capping a chaotic and historic week. The Dow gained 1.6 per cent and the Nasdaq composite jumped 2.1 per cent.

Stocks kicked higher as pressure eased a bit from within the US bond market. It's typically the more boring corner of Wall Street, but it's been flashing serious enough signals of worry this week that it's demanded investors' and Trump's attention.

The yield on the 10-year Treasury was trading at 4.47 per cent early Monday. On Friday, it topped 4.58 per cent in the morning, up from 4.01 per cent a week ago.

That's a major move for a market that typically measures things in hundredths of a percentage point.

Bond yields typically fall in times of alarm. Investors outside the United States could be selling their US bonds because of the trade war, and hedge funds could be selling whatever's available to raise cash to cover other losses.

More worryingly, doubts may be rising about the United States' reputation as the world's safest place to keep cash because of Trump's frenetic, on-and-off tariff actions.

Gold, considered a safe haven for investors, was trading at USD 3,244 an ounce.

A report on inflation at the wholesale level came in better than expected. But it's a backward looking indicator, measuring March's price levels. The worry is that inflation will rise in coming months as Trump's tariffs make their way through the economy. And that could tie the Fed's hands.

Friday's swings came after a set of stronger-than-expected profit reports from some of the biggest US banks, which traditionally help kick off each earnings reporting season.

JPMorgan Chase, Morgan Stanley and Wells Fargo all reported stronger profit for the first three months of the year than analysts expected. JPMorgan Chase rose 4 per cent, Morgan Stanley added 1.4 per cent and Wells Fargo lost 1 per cent.

In other trading early Monday, US benchmark crude oil dropped 10 cents to USD 61.40 per barrel, and Brent crude, the international standard, lost 10 cents to USD 64.66 per barrel.

The US dollar dropped to 142.68 Japanese yen from 143.91 yen. The euro climbed to USD 1.1398 from USD 1.1320. (AP) PY PY