Asian Markets Rise as US-China Trade Talks Boost Sentiment

Most Asian stocks edged higher on Wednesday, led by strong gains in Chinese markets after news of upcoming U.S.-China trade talks boosted hopes for easing trade tensions. The Shanghai Composite and CSI 300 indexes each rose 0.5%, while Hong Kong’s Hang Seng surged 1.5%, outperforming regional peers.

The positive momentum followed confirmation that U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet Chinese officials in Switzerland this week. This marks the most concrete step toward deescalation since the trade war intensified in April, although steep tariffs on both sides remain in place. Investor sentiment was also supported by the People’s Bank of China’s move to cut banks’ reserve requirements, signaling more stimulus for the economy.

Despite overnight losses on Wall Street, U.S. stock index futures rebounded in Asian trading, with S&P 500 Futures up 0.6%, driven by optimism over renewed trade dialogue. However, markets remained cautious ahead of the U.S. Federal Reserve’s decision later in the day, with expectations of steady interest rates and no immediate policy changes.

Indian markets were in focus after military tensions with Pakistan escalated. Despite the conflict, Gift Nifty 50 Futures rose 0.5%, pointing to a resilient open. India claimed strikes on terrorist camps, while Pakistan reported retaliatory actions, including the downing of five Indian aircraft.

Elsewhere in Asia, broader markets saw modest gains. Japan’s Nikkei 225 and TOPIX rose 0.3% and 0.4%, respectively. South Korea’s KOSPI added 0.4%, and Australia’s ASX 200 gained 0.2%. However, Singapore’s Straits Times Index slipped 0.2%, dragged down by United Overseas Bank after disappointing earnings.

Overall, trade optimism and monetary easing supported Asian equities, despite lingering geopolitical and economic risks.