Asian Stock Markets Surge as US-China Trade Tensions Ease: Nikkei and Hang Seng Soar!

Global Markets Show Positive Trends Amid U.S.-China Trade Optimism

In a promising turn of events, Asian markets made significant strides on Thursday, buoyed by the encouraging performance of Wall Street. Investors are increasingly optimistic as tensions surrounding the U.S.-China trade situation appear to be easing. Notably, Japan’s Nikkei 225 surged by more than 1%, continuing its upward trajectory from the previous day, while the Topix index climbed by 0.81%.

Market Highlights in Asia

South Korea’s Kospi remained stable, while the Kosdaq, which focuses on smaller companies, saw a modest increase of 0.34%.
Australia’s S&P/ASX 200 also experienced a gain, rising by 0.27%.
In Hong Kong, futures for the Hang Seng Index fluctuated around 22,069, showing minimal change from its earlier close of 22,072.62.

In a separate development, South Korea’s economy faced challenges as its GDP contracted by 0.1% in the first quarter of 2025, falling short of the 0.1% growth predicted by a Reuters poll.

U.S. Markets Experience Gains

On the other side of the Pacific, Wall Street enjoyed a surge on Wednesday, driven by renewed hopes for a resolution to the ongoing U.S.-China trade conflict. President Donald Trump reassured investors that he has "no intention of firing" Federal Reserve Chair Jerome Powell, which alleviated concerns regarding the Fed’s independence.

Even though the three major U.S. stock indexes pulled back slightly before the close, they had shown strong momentum earlier in the session. Treasury Secretary Scott Bessent emphasized that the current high tariffs between the U.S. and China are unsustainable, while Trump hinted at a desire to mitigate trade tensions between these two economic giants.

Key U.S. Market Figures:

S&P 500 futures rose by 0.1%.
Nasdaq Composite futures increased by nearly 0.1%.
The Dow Jones Industrial Average futures dipped by 45 points or 0.1%.

By the end of the trading day, all three major indexes concluded on a high note, showcasing optimism regarding the potential alleviation of trade tensions. The Dow Jones Industrial Average gained 419.59 points or 1.07%, closing at 39,606.57. The S&P 500 rose by 1.67%, finishing at 5,375.86, while the Nasdaq Composite soared by 2.50%, settling at 16,708.05. This marks consecutive gains for all three indexes, highlighting a positive shift in market sentiment.

As markets continue to react to developments in international trade and domestic economic indicators, investors remain hopeful for a stable economic outlook.