Asian markets showed continued upward momentum for a second day in a row on Tuesday, reflecting political developments in the United States. Investors appear encouraged by signs that lawmakers are nearing a deal to conclude a record-breaking government shutdown, boosting market confidence abroad.

The International Monetary Fund cautions that rolling shocks, fueled significantly by US tariff policies, are straining the global economy. Despite these challenges, the IMF observes that world markets have been more resilient than originally predicted, though concerns persist for a dimmer outlook ahead.

India has urged fellow BRICS nations to take practical steps to reduce mounting trade deficits, citing its booming imbalance with China as a prime example. Beijing, noting its $77.7 billion trade surplus with India, calls on the bloc to foster greater unity and economic coordination.

China’s exports to the United States dropped by 33% month-over-month in August, reflecting stronger tariff pressures and trade tensions. Although China’s overall exports maintained a 4.4% year-over-year increase, it fell short of the 5.0% forecast, fueling concerns about ongoing trade dynamics.

In a significant development for international trade, President Donald Trump announced that the United States and China will resume trade talks following a “very positive” conversation with Chinese leader Xi Jinping. The renewed negotiations aim to break the impasse over tariffs affecting both nations.

In a significant move towards easing global economic tensions, the United States and China have agreed to roll back tariffs, effectively pausing their prolonged trade war. Stock markets soared as the world’s two largest economies stepped back from a clash that has unsettled the global economy.

China has retaliated against the United States by imposing 125% tariffs on American goods, with President Xi Jinping asserting that the nation is “not afraid” of U.S. pressure. The move signals escalating tensions between the two economic giants.