Electronics such as computer chips, smartphones and laptops won't face the same U.S. import duties as some other products, which has allowed the growth of technology stocks to boost U.S. import tariffs.
In early European trade, Germany's DAX rose 2.4% to 20,857.54, while Paris's CAC 40 rose 2% to 7,245.28. FTSE 100 in the UK increased by 1.8% to 8,104.83.
The S&P 500's future gains by 1.2%, while the Dow Jones industrial average rose by 0.9%.
Asians share solid gains from records. Japan's Nikkei 225 rose to 1.2%, reaching 33,982.36, while South Korea's kospi rose 1% to 2,455.89.
Stocks of technology companies surged, with Tokyo Electronics growing 1.4% and the advantage of test equipment manufacturers growing 4.9%. South Korea's largest company, Samsung Electronics, rose 1.8%.
Hong Kong's Han Port jumped 2.4% to 21,417.40, while the Shanghai Composite Index reported that China's exports soared 12.4% in March from a year ago.
Trump said on Friday that after China announced that he raised his tariffs on U.S. products to the latest hike after Trump imported from China, he raised his tariffs on U.S. products to 125%, thus temporarily exempting smartphones, computers and other electronics.
China's Commerce Ministry said Trump's move was a “small step” to address what Trump calls a wrongful act of reciprocity tariffs. It urged him to cancel them altogether.
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Australia's S&P/ASX 200 rose 1.3% to close at 7,748.60.
Taiex fell 0.1% in Taiwan, after Trump said new chip tariffs will be announced “next week.”
Even if Trump recently announced some tariffs on him on other countries, some tariffs besides China, friction between the world's two largest economies could cause widespread damage and a possible global recession.
On Friday, the S&P 500 rose 1.8%, limiting a chaotic and historic week. The Dow Jones Index rose 1.6%, while Nasdaq Composite jumped 2.1%.
As pressure on the U.S. bond market eases, stocks are getting higher and higher.
Earlier on Monday, the 10-year Treasury yielded 4.44%. On Friday, the height was as high as 4.58% in the morning, up from 4.01% a week ago. This is a big move for a market where things can usually be measured in percentage points.
Bond yields are usually in periods of anxiety. Investors outside the U.S. may be selling U.S. bonds due to the trade war, and hedge funds may sell anything that can raise cash to make up for other losses. A deeper concern is whether Trump’s crazy tariff action raises doubts about the U.S. reputation as the safest cash place in the world.
Reports on U.S. inflation rates are better than expected. But it's a behind indicator that measures the price level in March. Worryingly, inflation will rise in the coming months as Trump’s tariffs reach targets in the economy. That can be tied to the Fed's hands.
Friday’s swing comes after a series of more than expected profit reports from some of the largest U.S. banks, traditionally helping each earnings reporting season begin.
JPMorgan Chase, Morgan Stanley and Wells Fargo all reported higher profits than analysts expected in the first three months of the year. JPMorgan Chase rose 4%, Morgan Stanley rose 1.4%, and Wells Fargo lost one percent.
In other trading earlier Monday, U.S. benchmark crude reversed early losses, at 63 cents a barrel to $62.13. International standard Brent crude climbed 62 cents to $65.38 a barrel.
The US dollar fell from 143.91 yen to 143.25 yen. The euro climbed from $1.1320 to $1.1382.
Gold, considered a safe haven for investors, fell about $9 to $3,235 earlier on Monday.
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