After the wild gyrations witnessed last week, markets got off to a relatively stable start following Friday's news that the White House would exempt smartphones, semiconductors, computers and other devices from painful "reciprocal" levies.

The announcement provided a much-needed injection of optimism for investors who had been sent scurrying for the hills in the wake of the US president's tariff flip-flops and tit-for-tat measures by China.

All three main indexes on Wall Street finished solidly higher, helped by comments from a top Federal Reserve official that the central bank was prepared to step in to support financial markets.

Asia followed suit, with tech firms helping push Hong Kong more than two percent higher, while Tokyo, Shanghai, Sydney, Seoul, Singapore, Wellington, Jakarta and Manila were also well up.

London, Paris and Frankfurt also saw big gains in the morning, while US futures were all sharply higher.

"After a period of chaotic price action, chinks of light poke through the forest canopy providing a much-needed guide to the entities that price risk and liquidity for a living, which in turn, may see liquidity conditions improve and a relative calm return to markets," said Chris Weston at Pepperstone.

However, Trump looked to temper the remarks on Sunday, saying the exemptions had been misconstrued and writing on his Truth Social platform that "NOBODY is getting 'off the hook'... especially not China which, by far, treats us the worst!"

He said he would announce new tariffs on semiconductors "over the next week".

His commerce secretary, Howard Lutnick, said earlier chip levies would likely be in place "in a month or two".

- 'No winners' -

Chinese President Xi Jinping said on Monday that protectionism "leads nowhere" and that a trade war would have "no winners", days after Beijing hit US goods with 125 percent duties but also suggested it would not retaliate further in the future.

Washington has ramped up tariffs on Chinese goods to 145 percent and excluded it from a 90-day pause of crippling levies the White House announced on Wednesday.

Data on Monday showed Chinese exports soared more than 12 percent last month as businesses rushed to get ahead of the swingeing tariffs, with the United States remaining the largest single destination, accounting for $115.6 billion worth of goods.

"But shipments are set to drop back over the coming months and quarters," warned Julian Evans-Pritchard, head of China economics at Capital Economics.

"It could be years before Chinese exports regain current levels."

As well as fuelling a panic on stock markets, the uncertainty caused by Trump's trade policy has also hit the dollar amid concerns about the outlook for the world's top economy.

The greenback extended losses against its major peers on Monday, with the euro at a three-year high and the Swiss franc at its strongest in 10 years.

Treasuries also remain under pressure amid worries that China and other nations might dump their vast holdings, which could call into question the US position as a rock-solid safe haven.

And gold, a go-to asset of safety in times of turmoil, hit a new peak of $3,245.75 on Monday, helped by the weaker dollar.

Concerns about the impact of the new measures saw Boston Fed chief Susan Collins tell the Financial Times that officials would "absolutely be prepared" to deploy its various tools to help stabilise the financial markets if the need arose.

She said in a separate interview with Yahoo Finance: "The higher the tariffs are, the more the potential slowdown in growth as well as elevation and inflation that one would expect."

She added that she expected inflation to rise "well above" three percent this year but saw no "significant" economic downturn.

- Key figures around 0810 GMT -

Tokyo - Nikkei 225: UP 1.2 percent at 33,982.36 (close)

Hong Kong - Hang Seng Index: UP 2.4 percent at 21,417.40 (close)

Shanghai - Composite: UP 0.8 percent at 3,262.81 (close)

London - FTSE 100: UP 1.9 percent at 8,114.12

Dollar/yen: DOWN at 142.90 yen from 143.49 yen on Friday

Euro/dollar: UP at $1.1390 from $1.1359

Pound/dollar: UP at $1.3166 from $1.3088

Euro/pound: DOWN at 86.52 pence from 86.80 pence

West Texas Intermediate: UP 0.4 percent at $61.75 per barrel

Brent North Sea Crude: UP 0.4 percent at $65.00 per barrel

New York - Dow: UP 1.6 percent at 40,212.71 (close)

dan/pbt

INDEX CORP.

Dow