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Asian Stocks Rise on US-China Trade Optimism, Chinese Markets Lead

Asian Stocks Rise on US-China Trade Optimism, Chinese Markets Lead. Source: Image by Gerd Altmann from Pixabay

Asian stocks mostly advanced on Wednesday, led by gains in Chinese markets, as optimism grew over a potential U.S.-China trade framework. Investors cheered reports that upcoming negotiations could ease U.S. curbs on tech exports to China, although details remain limited.

The Shanghai Shenzhen CSI 300 rose 1%, and the Shanghai Composite gained 0.7%, while Hong Kong’s Hang Seng Index climbed 0.9%. The positive sentiment followed two days of high-level trade talks in London, where officials announced a framework agreement that may improve bilateral relations. U.S. representatives hinted the deal could lead to reduced restrictions on Chinese rare earth exports, though no firm commitments were made.

Despite the upbeat tone, U.S. S&P 500 Futures dipped in Asian trading after a court allowed Trump-era tariffs to remain in place. Focus in the U.S. also shifted to the upcoming Consumer Price Index (CPI) inflation data, a key market driver.

Asian technology stocks rallied, particularly those in the semiconductor sector, on hopes that easing chip export controls will revive China’s role as a major market. South Korea’s KOSPI rose 0.6% to an 11-month high, driven by a 3% jump in SK Hynix shares. Japan’s Nikkei 225 added 0.4%, while the broader TOPIX was flat amid economic uncertainty and Bank of Japan rate policy concerns.

Australia’s ASX 200 rose 0.3%, with Johns Lyng Group surging over 20% after a takeover bid from Pacific Equity Partners. Singapore’s Straits Times Index fell 0.4% on profit-taking in bank stocks, while India’s Gift Nifty 50 Futures slipped 0.1%, signaling a tepid market open.

Overall, investor enthusiasm was tempered by the lack of concrete trade deal specifics, limiting broader market gains.

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