Asian Markets Edge Higher as US-China Talks Enter Day Two

Asian markets showed cautious optimism on Tuesday as investors tracked ongoing trade talks between the US and China in London, hoping for an easing of tariffs that have strained global supply chains and weighed on sentiment. 

Tokyo’s Nikkei 225 climbed 0.9% to 38,445.68, while South Korea’s Kospi advanced 0.3% to 2,865.12. Gains extended across the region, with Hong Kong’s Hang Seng adding 0.3% to reach 24,261.26, and Shanghai’s Composite index nudging 0.1% higher to 3,403.52. Taiwan’s Taiexsurged 2.1% to 22,253.46, and Australia’s ASX 200 moved up nearly 0.9% to 8,588.10.

On Wall Street, the S&P 500 edged 0.1% higher to 6,005.88, placing it within 2.3% of its all-time high. The Nasdaq rose 0.3% to 19,591.24, while the Dow slipped marginally by a single point to 42,761.76. 

Gains were buoyed by optimism that the US may soften tariffs now that negotiations with China and other global partners are in motion. The current 30% US tariff on Chinese goods remains under review following a temporary truce, and markets are pricing in potential relief.

What Does This Mean for Me?

Meanwhile, the yield on the 10-year US Treasury slipped to 4.48% as May’s inflation expectations dipped slightly, even as broader inflation is forecast to tick up to 2.5%. Oil prices also moved higher, with WTI at $65.45 and Brent crude at $67.35. The dollar firmed to 144.93 yen, while the euro weakened to $1.1399.