Asian stock markets edged higher on Thursday as investors reacted to rising optimism over U.S.-China trade discussions and signs that the U.S. may ease restrictions on advanced AI chip exports. Gains were modest, however, as geopolitical tensions between India and Pakistan kept broader sentiment in check.
Markets were buoyed by confirmation that U.S. and Chinese officials will meet in Switzerland this week for renewed trade negotiations. While the meeting sparked hopes of de-escalation in the prolonged trade war, progress remains uncertain.
Despite the optimism, U.S. President Donald Trump stated he had no plans to scale back his steep 145% tariffs on Chinese imports, a key sticking point for Beijing, which insists tariffs must be reduced before meaningful talks can resume.
Asian tech-heavy indices outperformed after reports indicated the U.S. could roll back Biden-era restrictions on exporting advanced AI chips.
Chip suppliers rallied:
S&P 500 and Nasdaq 100 futures climbed 0.5% and 0.7%, respectively, as tech gains on Wall Street lifted global sentiment. Trump hinted at a potential major trade deal with the UK, adding to risk-on appetite.
However, investor caution persisted ahead of the Federal Reserve’s policy announcement, with the central bank warning of heightened trade and economic risks.
Military escalation between India and Pakistan raised geopolitical concerns:
Despite tensions, India’s Nifty 50 futures gained 0.5%, signaling resilience.
Asia’s markets showed cautious optimism as traders weighed U.S.-China trade signals, easing AI chip restrictions, and heightened India-Pakistan military tensions. Investors now turn their attention to the Federal Reserve’s interest rate decision, which could steer global market direction for the remainder of the week.
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