Australia shares rebound as Trump reprieve to Canada, Mexico ease fears

Feb 4 (Reuters) - Australian shares rebounded on Tuesday after falling the most in five months the previous day, as U.S. President Donald Trump's decision to hold off imposing tariffs on Mexico and Canada for a month alleviated concerns of a full-blown global trade war.

The S&P/ASX 200 index .AXJO rose 0.7% to 8,435.0, as of 2333 GMT. The benchmark lost 1.8% on Monday, its worst session since early September.

Overnight, Trump suspended his threat of steep tariffs on Mexico and Canada for a month, although tariffs on China are still due to take effect within hours.

Trump would not be speaking with Chinese President Xi Jinping until later this week, a White House spokesperson said.

"Talks with China will be even more important for broad markets, and while China appears to be pulling out all the stops to get a deal ... the path for a similar resolution for China may not be as smooth," said Chris Weston, head of research, Pepperstone.

China is Australia's top trading partner and is the top destination for its commodities, including iron ore and coal.

The heavyweight mining index .AXMM jumped as much as 1%, a day after it lost 1.9%. BHP Group BHP.AX and Rio Tinto RIO.AX also rebounded 0.9% and 1.6%, respectively.

Banks .AXFJ advanced 0.9%, resuming their climb toward record highs after Monday's sharp decline. All the "Big Four" lenders advanced up to 1%.

Tech stocks .AXIJ jumped as much as 2% after declining 2% on Monday. WiseTech Global WTC.AX gained 1.6%, while Xero Ltd XRO.AX added 1.3%.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 rose 0.6% to 12,883.31.

Overnight, the U.S. Dow Jones Industrial Average .DJI fell 0.28%. The S&P 500 .SPX lost 0.76% while Nasdaq .IXIC lost 1.20%.

Brent crude LCOc1 futures fell 0.22% to $75.50 a barrel while U.S. West Texas Intermediate (WTI) crude CLc1 lost 0.98% to $72.44 per barrel.

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