Asian Stocks Rise as Trade Tensions Ebb, Gold Dips: Markets Wrap

(Bloomberg) -- Asian shares rose for the first time in four days, putting a regional gauge close to levels last seen in October as trade tensions continue to tamp down.

The MSCI Asia Pacific index gained 0.3% after the S&P 500 index climbed Monday to the brink of a bull market. Shares in Hong Kong advanced 1.3%, with Contemporary Amperex Technology Co. Ltd. jumping as much as 18% in its debut. Treasuries were steady after whipsawing on Monday with the downgrading of US debt by Moody’s Ratings.

US equity-index futures dropped 0.3% while contracts for Europe gained 0.5%. Gold dipped 0.5% on weak demand for havens.

Stocks have rallied in recent weeks amid optimism that trade tensions are waning since President Donald Trump announced century-high levies April 2. Investors in Asia are also staying focused on the outcome of US trade negotiations with India and Japan after a deal with China earlier this month on lowering tariffs boosted expectations.

“Asian stocks have rallied recently, driven by easing U.S.-China trade tensions following a tariff rollback, and renewed momentum in the AI trade, particularly in semiconductors and cloud-related sectors,” said Gary Tan, portfolio manager at Allspring Global Investments in Singapore. “Near-term sentiment remains constructive, supported by diversification flows — barring any tariff setbacks.”

India is discussing a US trade deal structured in three tranches and expects to reach an interim agreement before July, when Trump’s reciprocal tariffs are set to kick in, according to officials familiar with the matter. Japan’s key trade negotiator Ryosei Akazawa is making arrangements to visit the US for a third round of talks as soon as this week.

Japan’s finance minister said he’s arranging a bilateral meeting with US Treasury Secretary Scott Bessent this week to discuss topics including currency matters. That helped trigger gains in the yen.

Vietnam and the US held a second round of negotiations on a bilateral agreement on reciprocal tariffs in Washington DC. The talks kicked off Monday and will last until Thursday.

Stocks in Europe and the US had shrugged off the downgrade of US credit ratings as secretary Bessent downplayed concerns, saying the government is determined to lower spending and boost the economy. 

“Asian markets are playing catch-up today,” said Tim Waterer, chief market analyst at KCM Trade in Sydney. “We are seeing Asian stocks making up ground after yesterday’s falls, now that the Moody’s downgrade news is starting to fade.”

Meanwhile, China’s government accused the Trump administration of undermining recent trade talks in Geneva with its warning that using Huawei Technologies Co.’s artificial-intelligence chips “anywhere in the world” would violate US export controls. The Asian nation’s Commerce Ministry demanded in the statement that the US “correct its mistakes.”

In Australia, the Aussie edged lower after the central bank lowered its key interest rate for a second time this year, while remaining cautious on the policy outlook against a backdrop of heightened global uncertainty.

In geopolitical news, after two hours of conversation with Russian President Vladimir Putin, Trump said on social media that Ukraine and Russia would “immediately start negotiations” toward a ceasefire — but possibly without the US. 

Oil was steady after a two-day gain, as the market digested signs that Trump is pulling back from his efforts to end the war between Ukraine and Russia.

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 0.3% as of 1:40 p.m. Tokyo time
• Japan’s Topix rose 0.1%
• Australia’s S&P/ASX 200 rose 0.5%
• Hong Kong’s Hang Seng rose 1.3%
• The Shanghai Composite rose 0.4%
• Euro Stoxx 50 futures rose 0.5%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.1249
• The Japanese yen was little changed at 144.76 per dollar
• The offshore yuan was little changed at 7.2218 per dollar

Cryptocurrencies

• Bitcoin rose 0.3% to $105,756.61
• Ether rose 1.4% to $2,555.45

Bonds

• The yield on 10-year Treasuries was little changed at 4.45%
• Australia’s 10-year yield declined eight basis points to 4.45%

Commodities

• West Texas Intermediate crude was little changed
• Spot gold fell 0.5% to $3,212.65 an ounce

This story was produced with the assistance of Bloomberg Automation.

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