Asian equities opened on a cautious note Tuesday, as a rebound in US tech stocks offered modest optimism while investors continued to watch ongoing trade war developments and geopolitical risks.A regional index fluctuated between small gains and losses, and US equity-index futures dipped 0.2% after the S&P 500 rose 0.4% on Monday—buoyed by technology shares at the beginning of what is typically a subdued month for markets. Meanwhile, bonds held steady in early Asia trading, and the dollar remained flat after touching its lowest level since 2023 in the previous session.Oil extended its gains, while gold remained steady following its largest daily jump in four weeks.Investor focus has shifted to trade headlines after the US on Monday extended Section 301 tariff exclusions on some Chinese imports until August 31. The Trump administration has asked countries to submit their “best offer” on trade talks by Wednesday, Reuters reported. Efforts are also underway to arrange a call between Donald Trump and Chinese President Xi Jinping amid renewed accusations from both sides of breaching a prior trade truce.“We continue to expect market volatility as investors digest fresh tariff headlines and incoming US economic data,” said Ulrike Hoffmann-Burchardi of UBS Global Wealth Management. “Fiscal worries remain, and geopolitical tensions are heating up.”Although Trump has pushed for direct talks with Xi, the Chinese president has so far preferred negotiations via advisors. Their last known conversation occurred in January, before Trump’s inauguration. White House economic adviser Kevin Hassett suggested on Sunday that a call could happen this week.“The markets keep shrugging off simmering trade war risks,” said Kyle Rodda, senior market analyst at Capital.com. “While it has slipped down the list of priorities for market participants, below trade policy, fiscal policy and macroeconomic data, a very solid set of quarterly results from mega cap tech is enticing investors into the market.”Japan’s domestic focus on Tuesday will be on a fresh round of government bond auctions. The finance ministry is set to sell ¥2.6 trillion ($18 billion) in 10-year notes, following weak demand at auctions last month that raised concerns over public borrowing plans.On Monday, Asian equities tumbled after US President Donald Trump escalated trade tensions by doubling tariffs on steel and aluminium to 50%, accusing China of violating a recent trade truce. “China has totally violated the agreement,” Trump said, referring to a 90-day pause agreed last month. US Commerce Secretary Howard Lutnick also accused China of “slow-rolling” negotiations.China dismissed the claims as “seriously contrary to the facts” and criticised Washington’s “bogus charges.” The renewed tension revived fears of a full-blown trade war, overshadowing positive inflation data from the US.Markets across Hong Kong, Tokyo, Sydney, Singapore, Taipei, Manila and Jakarta registered declines. Hong Kong’s losses surpassed 2%, led by property stocks amid concerns over New World Development’s delayed bond payments and a broader credit crunch in China’s real estate sector.Oil surged after OPEC’s modest production increase disappointed markets, while escalating Ukraine-Russia hostilities added to the anxiety. The US dollar weakened amid fears about fiscal sustainability as Trump pushed for extended tax cuts and welfare reforms.Moody’s downgraded the US’s last top-tier credit rating, citing ballooning deficits. JPMorgan CEO Jamie Dimon cautioned that the US bond market could be heading for a crisis. “The bond market is going to have a tough time. I don’t know if it’s six months or six years,” he said.(With inputs from Bloomberg report)