The White House announced Wednesday an exemption on any autos coming through the United States, Canada and Mexico free trade pact, after Trump held talks with the "Big Three" US automakers -- Stellantis, Ford and General Motors.

US automakers have been among the most exposed to Trump's trade policy, which saw 25 percent blanket tariffs imposed on America's neighbours earlier this week -- with a lower rate for Canadian energy.

Wednesday's tariff delay buoyed global markets and lifted the auto sector, with stocks in Shanghai, Tokyo and Seoul also rising Thursday.

Hong Kong's stock exchange was up more than three percent.

"We have little details on what products the pause will cover -- whether this will only apply to finished cars or also automotive parts -- but given the exceptional degree of integration across North America for this industrial value chain, the decision is hardly surprising," said Maeva Cousin of Bloomberg Economics.

A global bond selloff also spread to Asia on Thursday as geopolitical sways over the past weeks, including Ukraine peace efforts and trade tariffs, drove benchmark yields upwards.

Japanese 10-year yields hit 1.5 percent for the first time in more than a decade while bonds in Australia and New Zealand also saw their yields jump.

The selloff was triggered by a sharp rise in German bund yields after Berlin announced on Wednesday plans to massively boost defence spending.

- 'Full confidence' of hitting 5% -

Chinese stocks were also responding well to Beijing announcing its 2025 growth target of around five percent, at the start of its annual meeting of the National People's Congress (NPC) on Wednesday.

China has vowed to make domestic demand its main economic driver despite facing persistent economic headwinds, and as an escalating trade war with the United States hit exports.

Beijing also announced a rare hike in fiscal funding, allowing its budget deficit to reach four percent this year.

Investors are hoping a huge fiscal stimulus package is coming.

China's central bank chief said Thursday that the country would further cut interest rates in the coming year to boost the economy.

And another top Chinese economic official said the government has "full confidence" that it can reach its goal of five percent growth this year.

"The commitment to five percent means one thing: more stimulus is coming," said Stephen Innes of SPI Asset Management.

"China isn't leaving anything to chance -- expect a mix of credit easing, fiscal firepower, and the occasional 'suggestion' to state banks to keep the machine humming."

Alibaba was among Hong Kong's top-performing stocks, with shares surging more than seven percent after the Chinese tech giant launched an artificial intelligence model it says can compete with DeepSeek.

Jakarta and Manila were up while Singapore and Wellington rose more modestly, and Sydney, Bangkok and Taipei were slightly down.

- Key figures around 0715 GMT -

Tokyo - Nikkei 225: UP 0.8 percent at 37,704.93 (close)

Hong Kong - Hang Seng Index: UP 3.00 percent at 24,302.41

Shanghai - Composite: UP 1.2 percent at 3,381.10 (close)

Euro/dollar: UP at 1.0812 from 1.0790 on Wednesday

Pound/dollar: UP at $1.2912 from $1.2896

Dollar/yen: DOWN 148.54 from 148.89 yen

Euro/pound: UP at 83.73 pence from 83.67 pence

West Texas Intermediate: UP 0.6 percent at $66.72 per barrel

Brent North Sea Crude: UP 0.6 percent at $69.72 per barrel

New York - Dow: UP 1.1 percent at 43,006.59 (close)

London - FTSE 100: DOWN less than 0.1 percent at 8,755.84 (close)

tc/sco

Stellantis

FORD MOTOR

General Motors

INDEX CORP.

Dow