China ADRs and ETFs continued to rise in overnight trading. XPeng up 7.8%; YINN up 5.3%; PDD Holdings up 4%; Alibaba up 3.4%; NIO up 2%.

President Donald Trump said he plans to be "very nice" to China in any trade talks and that tariffs will drop if the two countries can reach a deal, a sign he may be backing down from his tough stance on Beijing amid market volatility.

"It will come down substantially but it won ’ t be zero," Trump said Tuesday in Washington, following earlier comments from Treasury Secretary Scott Bessent that the standoff was unsustainable. Trump added that "we ’ re going to be very nice and they ’ re going to be very nice, and we ’ ll see what happens."

In addition, XPeng stock jumped 7.8% as the Chinese EV maker launched a faster-charging variant of its P7+ mid-to-large-size electric sedan on the first day of the 2025 Shanghai auto show, after starting to use the new battery pack in new models earlier this year.

The new P7+ variant is powered by a battery pack with a charging multiplier of 5C and has a starting price of RMB 208,800 ( $28,570 ) . C refers to the charging multiplier of the battery and 5C means that the battery can theoretically be fully charged in one-fifth of an hour.