Asian markets were mixed Tuesday following the previous day's global rally as traders keep a nervous eye on Donald Trump's next moves after he signed off on 25 percent tariffs for steel and aluminum imports, having warned of more measures to come.

The president has lived up to his campaign pledges to resume his hardball trade diplomacy to extract concessions on a range of issues, including commerce, immigration and drug trafficking.

However, while the moves have jolted sentiment, equities have held up since Trump took office -- London and Frankfurt even hit record highs Monday -- with analysts saying measures have so far been less severe than feared.

Still, caution looms over trading floors as dealers brace for the next announcement out of the White House, with Maurice Obstfeld, senior fellow at the Peterson Institute for International Economics, saying "the degree of uncertainty about trade policy has basically exploded".

And Charu Chanana, chief investment strategist at Saxo Markets, said: "These expanding trade actions beyond previous threats to Canada, Mexico and China are leading to potential new import restrictions and retaliation, signalling more bouts of volatility for investors. 

"Tariffs are being used not just to tax imports but also as tools for national security, economic leverage, and revenue generation, indicating a shift towards long-term economic policy rather than short-term trade disputes."

All three main indexes started the week on the front foot thanks to a rally in tech firms.

But Asia struggled to maintain its momentum from Monday, with Hong Kong flitting between gains and losses, while Shanghai, Singapore and Manila fell.

Seoul, Sydney, Wellington and Taipei rose.

The uncertainty fueled by Trump's moves has pushed safe haven gold ever-higher. On Monday, it broke above $2,900 for the first time. It extended gains Tuesday to hit a new peak above $2,938.

Fears that Trump's tariffs, along with tax cuts and deregulation, will reignite inflation and force the Federal Reserve to keep interest rates elevated have sent the dollar up against most of its peers.

Readings on consumer and producer price indexes this week will provide a fresh snapshot of inflation, while Fed boss Jerome Powell is also due to give depositions to US lawmakers.

Both will be pored over for an idea about the bank's plans for rates, with forecasts for two cuts at most this year.

Key figures around 0220 GMT

Hong Kong - Hang Seng Index: FLAT to 21,513.37

Shanghai - Composite: DOWN 0.3 percent to 3,313.01

Tokyo - Nikkei 225: Closed for a holiday

Euro/dollar: DOWN at $1.0300 from $1.0308 on Monday

Pound/dollar: DOWN at $1.2361 from $1.2364

Dollar/yen: UP at 151.99 yen from 151.97 yen

Euro/pound: DOWN at 83.33 from 83.35 pence

West Texas Intermediate: UP 0.1 percent at $72.37 per barrel

Brent North Sea Crude: UP 0.1 percent at $75.98 per barrel

New York - Dow: UP 0.4 percent at 44,470.41 (close)

London - FTSE 100: UP 0.8 percent at 8,767.80 (close)