Asian stock markets extended gains on Thursday, driven by renewed hopes of a breakthrough in the ongoing US-China trade dispute. Investors welcomed news that top US and Chinese trade negotiators will meet this weekend in Switzerland—their first talks since President Donald Trump’s announcement of steep new tariffs.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet Chinese Vice Premier He Lifeng for the high-stakes discussions, fueling optimism of a potential easing in the trade tensions that have rattled global markets. The US currently imposes tariffs of up to 145% on Chinese goods, with Beijing retaliating at 125%.
Adding to investor enthusiasm, Trump posted on Truth Social that he would announce a “major trade deal” later Thursday, though he didn’t specify the country involved. Speculation points to the United Kingdom, with the pound gaining ground against the dollar in early Asian trading.
Markets across Asia echoed Wall Street’s bullish performance, with positive movement in Hong Kong, Shanghai, Tokyo, Sydney, Seoul, and other regional exchanges. However, caution remains. Federal Reserve Chair Jerome Powell warned of “significant uncertainty” surrounding trade policy and its potential to raise inflation, slow growth, and increase unemployment.
Despite Trump’s repeated pressure on the Fed to cut interest rates, analysts expect no immediate changes. “The Fed is likely to hold steady until at least July,” said Tai Hui of JP Morgan Asset Management, citing strong job data and the Fed’s desire to maintain independence.
Market Highlights (as of 0230 GMT):
- Nikkei 225 (Tokyo): +0.2% at 36,863.15
- Hang Seng (Hong Kong): +0.9% at 22,895.17
- Shanghai Composite: +0.1% at 3,345.57
- Euro/Dollar: $1.1317
- Pound/Dollar: $1.3347
- Dollar/Yen: 143.70
- WTI Crude: +0.3% at $58.26
- Brent Crude: +0.3% at $61.27
- Dow Jones (NY): +0.7% at 41,113.97
- FTSE 100 (London): -0.4% at 8,559.33
