BANGKOK (AP) — Asian shares started the week with gains after U.S. stocks closed at an all-time high following their recovery from the shocks of the Trump administration’s trade policies.

Canada’s decision to cancel a plan to tax U.S. technology firms that had led President Donald Trump to halt trade talks helped to steady the markets. U.S. stock futures advanced after Canadian Prime Minister Mark Carney said the talks had resumed.

In Tokyo, the Nikkei 225 climbed 0.6% to 40,395.99.

Hong Kong’s Hang Seng lost 0.3% to 24,207.36, while the Shanghai Composite index advanced 0.5% to 3,438.46.

China reported that its factory activity improved slightly in June after Beijing and Washington agreed in May to postpone imposing higher tariffs on each others’ exports, though manufacturing remained in contraction.

In South Korea, the Kospi gained 0.5% to 3,070.93. Australia’s S&P/ASX 200 jumped 0.6% to 8,560.80.

Taiwan’s Taiex lost 1.4% and the Sensex in India was down 0.4%. In Bangkok, the SET was up 0.3%.

On Friday, the S&P 500 rose 0.5% to 6,173.07, above its previous record set in February. The key measure of Wall Street’s health fell nearly 20% from Feb. 19 through April 8.

The Nasdaq composite gained 0.5% to 20,273.46, its own all-time high. The Dow Jones Industrial Average rose 1% to 43,819.27.

The gains on Friday were broad, with nearly every sector within the S&P 500 rising. Nike soared 15.2% for the biggest gain in the market, despite warning of a steep hit from tariffs.

An update on inflation Friday showed prices ticked higher in May, though the rate mostly matched economists’ projections.

Inflation remains a big concern. Trump’s on-again-off-again tariff policy has made it difficult for companies to make financial forecasts and strained household budgets. A long list of businesses from carmakers to retailers have warned that higher import taxes will likely hurt their revenues and profits.

The U.S. has 10% baseline tariffs on all imported goods, along with higher rates for Chinese goods and other import taxes on steel and autos and the threat of more severe tariffs continues to hang over the economy. The current pause on a round of retaliatory tariffs against a long list of nations is set to expire on July 9. Failure to negotiate deals or further postpone the tariffs could once again rattle investors and consumers.

In an interview with Fox News Channel’s “Sunday Morning Futures,” Trump said his administration will notify countries that the trade penalties will take effect unless there are deals with the United States. Letters will start going out “pretty soon” before the approaching deadline, he said.