Asian stock markets, including Japan's Nikkei and Hong Kong's Hang Seng, experienced significant gains following the U.S. decision to pause planned tariffs on Canada and Mexico. The Nikkei rose 1.1% with auto and electronics stocks leading the surge, while the Hang Seng index jumped around 2.5% in morning trade. The positive sentiment was further supported by a one-month delay in tariffs announced by U.S. President Donald Trump, which contributed to a rebound in market sentiment. However, the yen strengthened against the dollar, reaching a two-month high in the 151 range, influenced by speculation over potential Bank of Japan rate hikes following robust wage growth data. This yen appreciation trimmed some of the early gains in Tokyo stocks, particularly affecting exporters. The Nikkei closed at 39,066.53, up 0.6%, while the broader Topix finished 0.3% higher at 2,752.2. The yen's rise was spurred by comments from a Bank of Japan official suggesting further rate increases, impacting the market dynamics.