Asian Markets Rally as US-China Trade Tensions Show Signs of Thawing
Shanghai and Tokyo indices spike on whispers of tariff rollbacks—because nothing fuels optimism like two economic superpowers briefly pausing their mutually assured financial destruction.
Tech and export-heavy sectors lead the charge as traders bet on a fragile detente. Analysts warn the rally could evaporate faster than a meme coin’s liquidity when the next inflammatory tweet drops.
Meanwhile, crypto markets remain conspicuously flat—proof that digital assets now react to macroeconomic news like mature assets, not the hyperactive toddlers of 2021.
Asian stocks advanced
Japan’s Nikkei advanced 0.70% and Taiwan’s benchmark jumped 2%. The MSCI index that tracks Asia-Pacific stocks outside Japan firmed 0.4%.
Even so, trading desks remained wary as investors continued to juggle the White House’s shifting tariff strategy and the risk that higher import costs could knock the world economy off course. Government data this week showed the US economy shrank in the first quarter for the first time in three years, while a private survey revealed Chinese factory output in April contracted at the fastest rate in sixteen months.
Several companies have recently trimmed or withdrawn profit forecasts, and Thursday’s updates from Apple and Amazon deepened anxiety. Their weak showings partly offset stronger figures earlier in the week from Microsoft and Meta Platforms, which had fed hopes that large technology groups could ride out the tariff storm.
Japanese yen slid to its weakest level since 10th April
In currency trade, the Japanese yen slid to 145.62 per dollar, its weakest level since 10 April, a day after the Bank of Japan left interest rates unchanged and lowered its growth outlook because of US tariffs.
The softer yen helped the U.S. currency log its best week since late February. The dollar index, which measures the greenback against six peers, last stood at 100.14 as traders awaited the April non-farm payrolls data. Economists polled by Reuters expect payrolls to have increased by 130,000 after March’s 228,000 rise.
Japanese officials were also in the spotlight. Finance Minister Katsunobu Kato told reporters that the country’s more than $1 trillion in US Treasury holdings are among the levers Tokyo could use in trade negotiations with Washington. His comments came as Japan’s top trade negotiator, Ryosei Akazawa, met US Treasury Secretary Scott Bessent in Washington for a second round of bilateral tariff talks.
Commodity markets gave mixed signals. Spot gold eased to $3,234.9 an ounce, putting the metal on track for its weakest week in two months as appetite for SAFE havens cooled. Oil headed the other way after President Donald Trump warned of secondary sanctions on Iran. Brent crude futures were up 0.56 percent, while U.S. West Texas Intermediate gained 0.6 percent.
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