Asia-Pacific markets advanced on Wednesday, lifted by renewed hopes of a potential de-escalation in United States-China trade tensions and a global rebound in investor sentiment.
By 11:30 a.m. AEST (1:30 a.m. GMT), Australia’s S&P/ASX 200 was up 1.7%, South Korea’s Kospi 200 gained 1.2%, and Japan’s Nikkei 225 added 1.7%.
The positive sentiment followed a sharp rally on Wall Street overnight, where the Dow Jones Industrial Average and the Nasdaq Composite climbed 2.7% apiece, while the S&P 500 rose 2.5%.
The market optimism was spurred by comments from U.S. President Donald Trump, who said final tariffs on Chinese goods would not be “anywhere near as high as 145%”, although he clarified that they “won’t be 0%” either.
His remarks suggested a potential softening in tariff measures, fuelling hopes of a more conciliatory approach in ongoing trade negotiations.
Trump also sought to ease concerns over the Federal Reserve’s independence, stating he has “no intention” of removing Fed Chair Jerome Powell before the end of his term.
In commodities, Brent crude gained 1.8% to trade near two-week highs at US$67.44 per barrel, as energy markets responded to improved risk appetite. Spot gold retreated 1.3% from recent record highs, trading at US$3,381.16 per ounce, as investors rotated into riskier assets.
Chinese equities also saw gains, with the Shanghai Composite rising 0.3% to 3,299.8, while the CSI 300 index remained unchanged at 3,784.0. Hong Kong’s Hang Seng Index rose 0.8% to 21,562.3, and India’s BSE Sensex edged up 0.2% to reach a three-month high of 79,595.6.
European markets mirrored the upbeat mood, with the FTSE 100 rising 0.6% to 8,238.6, Germany’s DAX gaining 0.4% to 21,293.5, and France’s CAC 40 up 0.6% to 7,326.5.
