Asia-Pacific markets mostly moved higher on Wednesday, buoyed by reports that United States Treasury Secretary Scott Bessent and trade representative Jamieson Greer are scheduled to meet their Chinese counterparts this week, potentially laying the groundwork for new trade negotiations over President Donald Trump’s tariff policies.
By 11 am AEST (1 am GMT), Australia’s S&P/ASX 200 rose 0.1%, while South Korea’s Kospi 200 climbed 0.5%. Japan’s Nikkei 225, however, edged 0.1% lower.
The planned discussions between Bessent and Greer and Chinese officials in Switzerland are seen as a possible step toward easing tensions, after Trump last month raised tariffs on Chinese imports to 145% while lowering duties on goods from other nations.
Meanwhile, China's central bank will reduce key interest rates by 10 basis points and the reserve requirement ratio by 50 basis points, central bank governor Pan Gongsheng said Wednesday, as authorities roll out new measures to support growth.
Investors are also focused on the U.S. Federal Reserve’s interest rate decision due later Wednesday (Thursday AEST).
According to ANZ analysts, “The economic backdrop ahead of the FOMC’s meeting this week points to a pause in the policy rate. The labour market held strong in April, with nonfarm payrolls data showing a stronger-than-expected addition of 177k jobs and a steady unemployment rate (4.2%).
"Additionally, ISM’s services index rose 0.8pts to 51.6 in April. The data suggest the services sector held up despite the looming uncertainty of tariffs and their impact on the economy."
In the U.S., Wall Street extended losses overnight, with the Dow Jones Industrial Average falling 1%, the S&P 500 losing 0.8%, and the Nasdaq Composite dropping 0.9%.
In commodities, Brent crude surged 3.2% to US$62.15 per barrel, while spot gold advanced 2.9% to US$3,431.14 per ounce.
Mainland Chinese equities advanced, with the Shanghai Composite gaining 1.1% to 3,316.1 and the CSI 300 rising 1% to 3,808.5.
In Hong Kong, the Hang Seng Index added 0.7% to 22,662.7. However, India’s BSE Sensex slipped 0.2% to 80,641.1.
European markets opened on a softer note. The UK’s FTSE 100 was flat at 8,597.4, Germany’s DAX declined 0.4% to 23,249.7, and France’s CAC 40 also shed 0.4% to 7,696.9.
