[MARKET ANALYSIS] Asia-Pac trades with cautious gains following the rebound on Wall St and Trump's latest tariff salvo

APAC Stocks: Mostly Positive

• Asia-Pac stocks are mostly higher following on from the rebound on Wall St, but with gains capped ahead of key events and big tech earnings stateside, while participants also digest US President Trump's latest tariff salvo against South Korea.

ASX 200: +0.8%

• Rallied on return from the long weekend, with risk sentiment also facilitated by a couple of M&A-related headlines and improvement in NAB business surveys.

Nikkei 225: +0.3%

• Price action is choppy following recent currency moves and after Services PPI data cooled but remained above the BoJ's price target.

KOSPI +1.9%

• Initially sold off at the open following US President Trump's announcement to raise tariffs on South Korean autos, lumber, pharma, and all other reciprocal tariffs to 25% from 15% due to its legislature not yet enacting the US-Korea trade deal. However, the index then clawed back its losses and more, with participants ultimately unfazed with the TACO trade potentially in play.

Hang Seng & Shanghai Comp: Hang Seng +1.1% / Shanghai Comp Flat

• Chinese markets are somewhat mixed with firm gains in Hong Kong led by Zijin Mining, which is to buy Canada's Allied Gold for USD 4bln, while the mainland lags despite an acceleration in Chinese Industrial Profits and the PBoC's liquidity efforts.

US Equity Futures: Mostly positive

• Kept afloat following yesterday's rebound but with upside capped as markets await Mag 7 earnings and after Dow futures wobbled as UnitedHealth shares were pressured on news that the Trump administration proposes keeping the rates steady that Medicare pays insurers.

European Equity Futures +0.2%

• Indicate a positive cash market open with Euro Stoxx 50 futures up 0.2% after the cash market closed with gains of 0.2% on Monday.

Asia-Pacific markets are displaying cautious gains, buoyed by the Wall Street rebound despite headwinds from President Trump's announced tariff increases on South Korea. The mixed investor sentiment reflects the uncertainty surrounding future trade relations and upcoming tech earnings, with some markets recovering losses triggered by the tariffs, signaling that broader market dynamics and resilience may prevail amidst geopolitical tensions.