Asia-Pacific Markets Respond Positively to Trade Hopes

Markets across the Asia-Pacific region experienced a significant uplift on Wednesday, fueled by growing optimism over potential easing in US-China trade tensions. This sentiment was bolstered by comments from US President Donald Trump, indicating that tariffs on Chinese goods would not escalate to the previously feared 145%, though he clarified that they would not be entirely lifted either.

Stability in Leadership and Economic Indicators

Further confidence was injected into the markets following Trump's reassurance of his "no intention" to replace Federal Reserve Chair Jerome Powell. On the economic front, Japan showcased signs of recovery with its services sector expanding in April and a noticeable softening in its factory downturn. Meanwhile, Australia reported a slight moderation in private sector growth.

Market Performances Highlight Regional Gains

Notable movements included Japan's Nikkei 225 rising by 1.72%, Hong Kong's Hang Seng leaping 2.65%, and South Korea's Kospi advancing 1.45%. Mainland China's Shanghai and Shenzhen Composites saw increases of 0.11% and 1.09%, respectively, while Australia's S&P/ASX 200 climbed 1.49%. The dollar also saw a modest gain against the yen, trading 0.18% higher.