TOKYO (AP) — Asian shares traded mixed Thursday, as worries crept back following a Wall Street rally that came after President Donald Trump appeared to back off his criticism of the Federal Reserve and his tough talk in his trade war.

Japan’s benchmark Nikkei 225 added 0.6% in afternoon trading to 35,075.72. Australia’s S&P/ASX 200 rose 0.8% to 7,983.00. South Korea’s Kospi lost 0.3% to 2,517.83. Hong Kong’s Hang Seng declined 1.2% to 21,805.29, while the Shanghai Composite fell 0.1% to 21,805.29.

Calling Trump’s policy announcements “headline turbulence,” Tan Jing Yi of the Asia & Oceania Treasury Department at Mizuho Bank warned that global economies could be hurt in the long run, adding, “Sentiments swing from hopes of intense relief to inflicted economic gloom.”

On Wall Street, the S&P 500 climbed 1.7% and added to its big gain from Tuesday that more than made up for a steep loss on Monday. The Dow Jones Industrial Average rose 419 points, or 1.1%, and the Nasdaq composite gained 2.5%.

Much of the recent market volatility is because of uncertainty about what Trump will do with his economic policies. Adding to some relief was Trump saying late Tuesday that he has “no intention” to fire the head of the Federal Reserve.

Trump’s tough talk had frightened investors because the Fed is supposed to act independently, without pressure from politicians, so that it can make decisions that may be painful in the short term but are best for the long term.

While a cut to interest rates by the Fed could give the economy a boost, it could also put upward pressure on inflation. Trump also said U.S. tariffs on imports coming from China could come down “substantially” from the current 145%.

“It won’t be that high, not going to be that high,” he said.

Investors are hoping Trump would lower his tariffs after negotiating trade deals with other countries. Trump said this week that he would be “very nice” to the world’s second-largest economy and not play hardball with Chinese President Xi Jinping.

“There is an opportunity for a big deal here,” U.S. Treasury Secretary Scott Bessent said Wednesday.

All the uncertainty means one of the few predictions many along Wall Street are willing to make is that sharp swings for financial markets will continue for a while. The market will “more likely than not continue to be dictated by Trump’s latest whims regarding tariffs and trade,” said Tim Waterer, chief market analyst at KCM Trade.

The S&P 500 remains 12.5% below its record set earlier this year after briefly dropping roughly 20% below the mark. Its swings have been coming not just day to day but also hour to hour as Trump and his administration’s officials continue to surprise markets.

Trump’s latest comments had a relaxing effect on the bond market, where Treasury yields eased. The yield on the 10-year Treasury fell to 4.38% from 4.41% late Tuesday. It dropped as low as 4.26% earlier in the morning.

Big Tech helped lead indexes higher. Nvidia rose 3.9% to claw back more of the sharp losses it took last week, when it said U.S. restrictions on exports of its H20 chips to China could hurt its first-quarter results by $5.5 billion. The chip company’s stock was the strongest single force lifting the S&P 500.

Tesla revved 5.4% higher after CEO Elon Musk said he’ll spend less time in Washington and more time running his electric vehicle company after Tesla on late Tuesday reported a big drop in profits. It’s been struggling because of backlash against Musk’s efforts to lead cost-cutting efforts by the U.S. government.

All told, the S&P 500 rose 88.10 points to 5,375.86. The Dow Jones Industrial Average added 419.59 to 39,606.57, and the Nasdaq composite gained 407.63 to 16,708.05.

In energy trading, benchmark U.S. crude rose 3 cents to $62.30 a barrel. Brent crude, the international standard, added 4 cents to $66.16 a barrel.

In currency trading, the U.S. dollar slipped to 142.82 Japanese yen from 143.15 yen. The euro cost $1.1335, up from $1.1322.

___

AP Business Writer Stan Choe contributed.