Asian Markets Rally as US-China Trade Truce Sparks Relief Rally

Regional equities catch a bid after the world''s two largest economies finally stop playing economic chicken.

Traders breathe easy—for now—as the deal avoids another round of tariff tantrums. But let''s be real: this is just a temporary ceasefire in a decade-long financial cold war.

Cynical bonus: Wall Street bankers already pricing in the next ''unexpected'' trade war volatility premium.

Lutnick said the talks are going well, spiking optimism

US Secretary of Commerce Howard Lutnick, speaking in London Tuesday evening, described discussions with Chinese counterparts as “going really, really well.” Both sides have suspended many of the tariffs they imposed on each other to keep negotiations on track.

A survey released Tuesday showed that small-business Optimism in the United States ticked up slightly in May. 

In individual stock moves, Tesla shares jumped 5.7 percent, recouping some ground after last week’s sell-off. The electric-car maker fell sharply when founder Elon Musk’s public spat with President TRUMP raised concerns about possible government retaliation against the company.

Meanwhile, US–traded shares of Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, rose 2.6 percent after the firm said its May revenue surged nearly 40 percent from a year earlier.

On bond markets, the yield on the 10-year US Treasury eased to 4.48 percent from 4.47 percent late Tuesday. In commodities, benchmark US crude added eight cents to $65.06 a barrel, and Brent crude crept up two cents to $66.89 a barrel.

In currency trading, the dollar strengthened slightly against the yen, trading at 145.08 yen versus 144.84 yen on Tuesday. The euro slipped to $1.1418 from $1.1425.

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