Asia-Pacific Markets Respond Positively to Trade Hopes

Markets across the Asia-Pacific region experienced a notable uplift on Wednesday, fueled by optimism surrounding 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 145%, though complete removal is not on the table.

Stability in Federal Reserve Leadership Adds to Market Confidence

Further calming market nerves, President Trump clarified he has "no intention" of replacing Federal Reserve Chair Jerome Powell. This announcement contributed to the positive trading atmosphere, alongside encouraging economic indicators from Japan and Australia.

Economic Indicators Show Mixed but Promising Signals

Japan reported an expansion in its services sector for April, alongside a softening in factory downturn. Meanwhile, Australia saw a slight moderation in private sector growth. These developments provided additional support to the regional market rally.

Market Performances Highlight Regional Gains

At 7:14 am CET, Japan's Nikkei 225 was up by 1.72%, while Hong Kong's Hang Seng led the charge with a 2.65% surge. South Korea's Kospi and Australia's S&P/ASX 200 also posted significant gains, climbing 1.45% and 1.49%, respectively. Mainland China's markets showed modest increases, with the Shanghai and Shenzhen Composites rising by 0.11% and 1.09%.

The dollar strengthened slightly against the yen, trading 0.18% higher at 141.8480.