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Asian markets kept the risk-on engine humming today, shrugging off the ongoing U.S.- China tariff standoff and grinding higher on signs that President Trump is ready to soften his auto tariff threats. The regional benchmark advanced, with South Korean automakers like Hyundai catching a strong tailwind. Meanwhile, S&P 500 futures caught a small bid into Asia hours, extending Wall Street’s five-day rally — the longest winning streak since November.

The headline grabber? A signal that imported automobiles will be carved out from the broader tariff slugfest. That was enough to kick a few more chips onto the table and reinforce the market’s hope that, even if the U.S.- China heavyweights are still circling each other, there’s still room for incremental détente elsewhere.

FX flows stayed contained. The dollar firmed modestly, gold dipped around 0.6%, and Treasuries remained on ice, as Tokyo was shut for the holiday. Volumes were thin, but directional bias remained risk-on across the complex.

Still, nobody’s getting reckless. Beneath the surface, traders know the tape is entering a minefield this week, with U.S. jobs, GDP,and earnings from the big four (Microsoft (MSFT), Apple (AAPL), Meta (META), Amazon (AMZN)) ready to either extend the melt-up or yank the rug out.

And the messaging isn’t getting cleaner. Treasury Secretary Bessent basically waved off China for now, saying Washington is pushing bilateral deals with 15–17 countries instead. Meanwhile, Beijing’s official mouthpieces aren’t blinking, doubling down on rhetoric and blaming the U.S. for "bullying" behaviour. Translation: Don’t expect China to cave any time soon.

Global markets are still trading on hope, not fundamentals, but the tariff walk-back relief rally still has legs.

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