Asia-Pacific Markets Edge Up as US-China Trade Talks Enter Day Two—Because Clearly, the First Day Fixed Nothing

Stocks inch higher while traders hold their breath—another round of diplomatic theater unfolds in London. Will they actually agree on something this time, or just recycle last year's talking points?

Bonus jab: Meanwhile, hedge funds are already pricing in the 'compromise'—a 0.5% tariff tweak and a photo op.

Trading in Asia was broadly positive

Tokyo’s Nikkei 225 climbed 1% to 38,473.97, and South Korea’s Kospi added 0.9% to 2,881.40. 

In Hong Kong, the Hang Seng edged up 0.2% to 24,242.03, while Shanghai’s Composite index rose 0.1% to 3,403.51. 

Taiwan’s Taiex led gains in the region with a 2% jump. Meanwhile, Australia’s S&P/ASX 200 gained 0.7%, finishing at 8,578.50.

U.S. stocks edged higher on Monday

The S&P 500 inched up 0.1% to 6,005.88, leaving it 2.3% below its all-time high set in February. The Dow Jones Industrial Average slipped by 1 point to 42,761.76, effectively flat for the day. The Nasdaq composite climbed 0.3%, reaching 19,591.24.

Hopes that President Donald Trump might roll back some tariffs if new trade deals are struck have helped the S&P 500 recover after a roughly 20% drop from its peak two months ago. 

The index is now above levels seen after Trump’s surprise announcement of broad tariffs in April, a MOVE he termed “Liberation Day.”

Some of the largest share movements on Monday came after takeover news. Qualcomm shares jumped 4.1% when the chipmaker said it WOULD buy Alphawave Semi for $2.4 billion. 

Electric vehicle maker Tesla also rallied, recovering from a sharp drop late last week. Shares climbed 4.6% following a day of mixed trading, after Tesla slid when CEO Elon Musk’s rapport with President Trump appeared to sour.

Oil prices ticked up while the dollar steadied

A successful deal between Washington and Beijing could lift the global growth outlook and spur demand for commodities.

Oil prices ticked up on Tuesday as traders awaited the outcome of the talks, which could ease trade worries and boost fuel consumption. 

By 03:30 GMT, Brent crude futures were trading at $67.32 a barrel, up 28 cents or 0.4%, while U.S. West Texas Intermediate stood at $65.52, up 23 cents or 0.4%. On Monday, Brent had briefly reached $67.19, its highest since April 28.

The U.S. dollar firmed slightly, with the euro slipping 0.17% to $1.14 and sterling at $1.3543. The dollar index, which tracks the currency against six rivals, rose 0.2% to 99.189, remaining NEAR the six-week low hit last week. It is down 8.7% so far this year as investors fret over the impact of trade barriers on U.S. growth.

At the same time, the Australian dollar held steady at $0.652, often seen as a gauge of risk appetite, while the New Zealand dollar eased slightly to $0.60425 but stayed close to the seven-month peak reached last week.

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