Asia-Pacific markets rise on Tuesday as concerns about a potential trade war eased after U.S. President Donald Trump delayed tariffs on Canada and Mexico for a month. Late on Monday, President Donald Trump agreed to “immediately pause” tariffs on Mexico and Canada for a month following successful negotiations with their respective leaders.

The German and French stock markets were down about 2%, and London's FTSE 100 dropped more 1%, according to the British Broadcasting Corporation. However, the U.S. dollar strengthened on the currency markets as the Canadian dollar plunged to its lowest level since 2003, the BBC also reports.

Investors braced for a potential trade war after Trump imposed tariffs on goods from Canada, Mexico and China and pledged future tariffs on the European Union.

Shares of Japanese and South Korean car makers and their suppliers led declines in Asia on Monday, as exporters across the region were walloped by U.S. President Donald Trump's introduction of sweeping tariffs on Mexico,

Asia's factory activity weakened in January as soft Chinese demand and threats of higher tariffs by U.S. President Donald Trump weighed on business sentiment, private surveys showed on Monday, darkening the outlook for the region's economy.

Factories across Asia expanded at a lackluster pace in January as demand cooled, ahead of a trade war that President Donald Trump kicked off on the weekend.