Japanese auto stocks fell sharply after new U.S. tariffs against Mexico, Canada and China raised concerns about their U.S. sales of cars made in the North American trading partners and a further escalation in trade conflicts.

Asian technology stocks surged on Tuesday as investors responded to former US president Donald Trump’s decision to pause tariffs on Canadian and Mexican exports.

U.S. President Donald Trump said on Sunday the sweeping tariffs that he has imposed on Mexico, Canada and China may cause "some pain" for Americans, as Wall Street and Washington's largest trading partners signaled hope that the trade war would not last long.