Most Asian stocks rebounded on Wednesday amid hopes that U.S. President Donald Trump may negotiate the steep tariffs imposed on Mexico, Canada, and China, just a day earlier, while Australian shares declined despite data showing robust economic growth in the fourth quarter.

Japan’s factory activity shrank for an eighth consecutive month in February, while worries about U.S. protectionist trade policies weighed on firms’ outlook, a private-sector survey showed on Monday.

China is considering retaliatory measures against U.S. President Donald Trump’s threat of imposing an additional 10% tariff against the country, the Global Times reported on Monday. 

Chinese manufacturing activity grew more than expected to a three-month high in February on the back of increased production and new orders, private purchasing managers index (PMI) data showed on Monday. 

China’s homebuilding sector is set to remain in decline for the foreseeable future, despite government efforts to support developers and stabilize the market, according to Capital Economics. 

U.S. Commerce Secretary Howard Lutnick said on Sunday he would strip out government spending from the gross domestic product (GDP) report, but gave no indication how soon this change might happen, while dismissing fears of a possible recession.