Asian Markets Climb Amid Renewed Hopes for US-China Trade Deal

Asian stock markets advanced on Thursday as investors grew optimistic about easing trade tensions between the United States and China ahead of high-level negotiations scheduled for the weekend. The rally followed U.S. President Donald Trump’s announcement of an impending “major trade deal,” fueling market speculation and boosting investor sentiment.

Recent calm in global markets has been supported by the hope that Washington will resolve disputes with key trading partners, avoiding further escalation of tariffs that could harm the global economy. This sentiment gained further traction after U.S. and Chinese officials confirmed that top-level talks would take place on Saturday and Sunday in Switzerland. Key attendees include U.S. Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng.

The talks come on the heels of aggressive tariff measures, with the U.S. imposing 145% duties on Chinese goods and China responding with 125% levies of its own. The upcoming meeting is widely seen as a critical opportunity to de-escalate tensions between the world’s two largest economies.

In a separate development, Trump teased a major trade agreement with an unnamed “large, highly respected country,” prompting speculation across trading floors. Reports from the New York Times suggest the country may be the United Kingdom, as the British pound strengthened against the U.S. dollar during early Asian trading.

Positive momentum from Wall Street carried into Asia, with major markets posting gains:

• Tokyo (Nikkei 225): +0.2% at 36,863.15
• Hong Kong (Hang Seng): +0.9% at 22,895.17
• Shanghai (Composite Index): +0.1% at 3,345.57
• Other gainers: Sydney, Seoul, Wellington, Taipei, Manila, and Jakarta

Despite the market upswing, concerns remain over the broader implications of the U.S. administration’s trade policies. Federal Reserve Chair Jerome Powell warned that prolonged tariff increases could lead to inflation, slower economic growth, and higher unemployment. The Fed maintained its interest rate position, citing increasing uncertainty in the economic outlook.

Powell emphasized that “a great deal of uncertainty” surrounds trade policy and said any significant policy shift—such as a rate cut—would require clear signs of economic weakness. Analysts believe the Fed is unlikely to act until July, as current job market data suggests stable momentum.

Key Currency and Commodity Movements at 02:30 GMT:

• Euro/Dollar: $1.1317 (up from $1.1301)
• Pound/Dollar: $1.3347 (up from $1.3286)
• Dollar/Yen: 143.70 yen (down from 143.89 yen)
• West Texas Intermediate Crude: +0.3% at $58.26/barrel
• Brent Crude: +0.3% at $61.27/barrel

Major Global Indexes:

• New York – Dow Jones: +0.7% at 41,113.97
• London – FTSE 100: -0.4% at 8,559.33

Investors now turn their focus to the upcoming trade talks and Trump’s promised announcement, both of which could set the tone for global markets in the days ahead.