Asian equities gain momentum following constructive U.S.-Japan trade negotiations

Market sentiment in Asia turned bullish as regional stock indices climbed higher, reflecting investor optimism after the United States and Japan concluded a productive round of trade discussions. The positive outcome from these bilateral talks appears to have alleviated some concerns about potential trade barriers, prompting increased buying activity across major Asian exchanges.

The currency market mirrored the stock moves. The Japanese yen weakened 0.6 percent to ¥142.67 per dollar after Ryosei Akazawa, Tokyo’s chief negotiator, said exchange rates were not on the agenda. The euro slipped 0.3 percent to $1.1362, and the offshore yuan eased 0.2 percent to 7.3109 per dollar.

Trump said there was “big progress” in talks with Japan

President Donald Trump said there was “big progress” toward a deal that would spare Japan from higher U.S. import taxes. A 24 percent across‑the‑board tariff on Japanese goods is on hold, though a 10 percent baseline charge and 25 percent levies on cars, steel and aluminum remain.

Investors welcomed the talks after broad U.S. levies announced earlier this month unsettled global markets. Attention now turns to country‑specific negotiations and to China, which signaled it wants several steps from Washington before agreeing to resumed discussions.

Sentiment improved despite fresh tensions on Wednesday, when Washington restricted some Nvidia chip exports and Federal Reserve Chair Jerome Powell said the central bank would take a wait‑and‑see stance on tariffs. Stocks retreated then, but Treasuries rallied for a third straight day as investors sought safety; gold reached a record high on the same demand.

Akazawa said preparations are under way for a second negotiating round later this month aimed at a quick deal. Other nations are rushing to secure agreements with Washington to avoid the tariffs Trump imposed—and quickly paused—on roughly 60 trading partners. The U.S.–Japan talks may serve as a template for future U.S. negotiations with allies.

Meanwhile, sources said the White House plans to press countries to scale back commerce with China during tariff discussions. Chinese President Xi Jinping, touring Southeast Asia, urged regional unity as part of an “Asian family.” Goldman Sachs warned U.S. investors could have to dump about $800 billion in Chinese equities in a full financial decoupling.

Elsewhere, the Bank of Korea kept its benchmark rate unchanged, and the European Central Bank is expected to cut rates later Thursday. Oil gained for a second session after Washington vowed to push Iran’s crude exports to zero.

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