Asian Stocks Rise as US-Japan Trade Talks Begin; Wall Street Retreats on Fed Warning
Asian markets edged higher as investors assessed the start of trade negotiations between the US and Japan. Japan’s Nikkei rose 1.1% to 34,299.94 as the two countries began discussions in Tokyo. Former President Donald Trump made a surprise appearance at the talks, proclaiming “big progress” alongside lead Japanese negotiator Ryosei Akazawa.
Investor sentiment was also shaped by remarks from Federal Reserve Chair Jerome Powell, who cautioned that tariffs could lead to slower economic growth and higher inflation.
Technology stocks remained in focus following a turbulent session on Wednesday, triggered by cautious outlooks from Nvidia and ASML, and ahead of earnings from Taiwan Semiconductor Manufacturing Company (TSMC).
South Korea’s Kospi gained 0.9% to 2,469.52, while Taiwan’s Taiex declined 0.7% to 19,338.73.
Meanwhile, US markets closed sharply lower as Powell indicated that the Fed may take longer to bring inflation under control amid escalating trade tensions.
The S&P 500 fell 2.2% to 5,275.70. The Dow Jones Industrial Average dropped 1.7% to 39,669.39, and the tech-heavy Nasdaq slid 3.1%.
In the bond market, the yield on the 10-year US Treasury dipped to 4.282%, down from 4.332% the previous day.
