Asia markets rise as trade talks eyed; investors assess economic data in the region

Asia-Pacific stocks mixed on Thursday, following an overnight sell-off on Wall Street sparked by Fed Chair Powell’s warning that trade tensions could threaten the Fed’s inflation and employment goals. Confusion arose after a White House statement indicated that certain Chinese goods may face tariffs of up to 245%, encompassing both new and historical levies dating back to the first Trump administration. However, markets were calmed somewhat by clarification that the new tariffs stand at 145%. In corporate news, investors awaited Taiwan Semiconductor Manufacturing Co’s ( TSM ) first-quarter earnings due later in the day. Gold hovered at an all-time high above the $3,340 level on Thursday. Japan ( NKY:IND ) rose 0.86% to above 34,000 while the broader Topix Index gained 0.3% to 2,505 on Thursday, recouping losses from the previous session, with technology stocks leading the rebound. The Japanese yen weakened past 142 per dollar on Thursday, pulling back from multi-month highs as the US dollar regained strength following hawkish remarks from Federal Reserve Chair Jerome Powell. Tokyo officials are in Washington this week pushing for the full removal of President Trump’s tariffs, including a 10% base tariff and an additional 25% levy on Japanese car exports. Despite the focus on trade, Economy Minister Ryosei Akazawa noted that foreign exchange issues have not been part of the discussions. Bank of Japan board member Junko Nakagawa stated in a speech that U.S. trade policy represents a substantial risk to Japan’s economic prospects. On the economic front, Japan’s March trade surplus above forecasts as export growth outpaced imports , weighed down by soft demand from China and the EU. China ( SHCOMP ) rose 0.01% held above 3,270 while the Shenzhen Component rose 0.3% to 9,800 on Thursday, with mainland stocks remaining supported following reports that China is open to engage in trade negotiations with the US with certain preconditions, and the offshore yuan to around 7.31 per dollar on Thursday, reversing gains from the previous session as investor caution resurfaced amid renewed concerns over US-China trade relations. China’s foreign ministry on Thursday dismissed the U.S.’s “tariff numbers game” after the White House detailed how China’s retaliation leads to tariffs up to 245%, including reciprocal, fentanyl, and unfair trade practice duties. This follows Trump’s recent global tariffs, largely eased except for China. Meanwhile, Washington stated Trump is open to a deal, but that Beijing must take the first step, adding China “needs our money.” Other countries are now exploring bilateral trade pacts with the U.S. Hong Kong ( HSI ) rose 1.33% to 21,324 in early trade Thursday, buoyed by broad-based sector gains. India ( SENSEX ) fell 0.07% to 76,971 in early trade on Thursday, halting gains from the previous three sessions amid sharp losses in tech stocks. Australia ( AS51 ) rose 0.59% to around 7,770 on Thursday, recovering losses from the previous session. The Australian dollar slipped to around $0.635 on Thursday, breaking a six-day winning streak, as weaker-than-expected employment data fueled expectations of further monetary easing by the Reserve Bank of Australia. While the unemployment rate stayed low at 4.1%, March employment growth came in below forecasts . The Bank of Korea maintained its base rate at 2.75% during its April 2025 meeting, following a 25 bps cut in February aimed at stabilizing the currency amid new U.S. tariffs, aligning with market expectations. In the U.S., on Wednesday, all three major indexes ended lower, led by a steep downturn in tech stocks as trade tensions escalated and investors digested cautious remarks from Federal Reserve Chair Jerome Powell. In a speech on Wednesday, Chair Powell’s comments in Chicago added pressure on markets, as he warned that rising tariffs could both fuel inflation and dampen growth, complicating the Fed’s dual mandate. His ambiguous stance on interest rates further unsettled investors, causing major indices to hit session lows. U.S. stock futures stabilized on Thursday after a sharp tech-driven selloff in the previous session: Dow +0.69%; S&P 500 +0.76%; Nasdaq +0.84%. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Australia’s unemployment rate stays low at 4.1%, March employment growth below forecasts Japan’s March trade surplus above forecasts as export growth outpaced imports China’s March retail sales rises more than expected to 5.9%; industrial output rises 7.7%; unemployment rate falls 5.2% China’s Q1 GDP expands 1.20% Q/Q RBA minutes reveal cautious approach to future interest rate moves

Source: Seeking Alpha