Japan's benchmark Nikkei index ended more than 9% higher on Thursday after U.S. President Donald Trump's stunning reversal on sweeping reciprocal tariffs.

Trump on Wednesday announced a 90-day pause on the most onerous new tariffs on imports to the United States for every country except China.

The 225-issue Nikkei average closed 2,894.97 points (9.12%) higher, at 34,609.00 points, while the broader Topix index gained 8.09%, or 190.07 points, to 2,539.40 points.

All 33 sub-sectors of the Topix gauge advanced, with exporters such as producers of electric appliances and automakers ranking among the largest contributors to the index’s gains.

Over in South Korea, large-cap chip and auto exporters led the market rally.

Masayuki Kubota from Rakuten Securities in Japan called Trump's announcement "a wonderful big surprise."

The Japanese yen, seen as a haven, climbed by 0.64% against the greenback, to ¥146.83 to the dollar.

On Wall Street on Wednesday, the Dow Jones Industrial Average soared to close nearly 8% higher while the Nasdaq rose 12.2% to notch its best day in 24 years.

While equity markets across Asia bounced back sharply during the day, a degree of caution persisted as traders remained uncertain about the prospects of a long-term resolution to the crisis.

"Investors across Asia and beyond are breathing a sigh of relief,” said Frederic Neumann, chief Asia economist at HSBC Holdings. "The postponement of reciprocal tariffs by the U.S. allows more time for negotiations. For export-centered Asian economies this is especially important, given the growth impact steep U.S. tariffs would have had.”

Concerns over an escalating trade war and its impact on the global economy have toppled stock markets, sending Japan’s blue-chip Nikkei gauge into a bear market. The broader Topix index was down more than 10% since the tariffs were announced, through Wednesday.