Asia markets rise on US-China framework deal ;U.S. futures dip ahead of inflation data

Asia stock markets trade higher on Wednesday as progress in U.S.-China trade talks raised hopes of easing retaliatory tariffs, pending final approval from Presidents Trump and Xi Jinping. Market focus remains on US–China trade developments. Gold prices traded around $3,330 per ounce on Wednesday, moving sideways on US-China Talks. Japan ( NKY:IND ) rose 0.47% to around 38,400 while the broader Topix Index gained 0.2% to 2,791 on Wednesday, with Japanese shares rising for the fourth straight session. The Japanese yen held its recent decline to around 144.9 per dollar on Wednesday, hovering near a two-week low. Japan’s producer prices rose 3.2% year-on-year in May , slowing from a marginally revised 4.1% growth in April and missing market consensus of 3.5% and marking the slowest pace in eight months, easing some inflation concerns. China ( SHCOMP ) rose 0.54% to above 3,400 while the Shenzhen Component gained 1% to 10,260 on Wednesday, reversing losses from the previous session amid signs of progress in US-China trade negotiations, and the offshore yuan steadied around 7.18 per dollar on Wednesday, as investors assessed the outcome of two-day US-China trade talks held in London. The negotiations resulted in a framework agreement. Under the framework, China is expected to relax export restrictions on rare earth minerals and magnets, while the US is considering easing its curbs on advanced technology exports to China. Although both nations will seek final approval from their respective leaders before moving forward. China is reportedly working to reduce pork production to stabilize prices and combat deflation. Bloomberg News stated that authorities are advising farmers against expanding sow herds and discontinuing the practice of secondary pig fattening, which increases meat output. In China, investors are awaiting a series of economic indicators scheduled for release next week, including industrial production, retail sales, and the unemployment rate. Hong Kong ( HSI ) rose 1.05% to 24,337 on Wednesday morning, picking up from a slight dip the day before. Hong Kong reaffirmed its commitment to the USD currency peg, calling it a “fundamental success factor,” the city leader John Lee said. India ( SENSEX ) rose 0.14% Indian and US negotiators made progress in trade talks in New Delhi on Tuesday, focusing on market access, tariff cuts, and non-tariff barriers, according to Indian officials. Australia ( AS51 ) rose 0.09% to around 8,620 on Wednesday, hitting a fresh record high. The Australian dollar slipped to around $0.650 on Wednesday, ending two consecutive sessions of gains. In the U.S., on Tuesday, all three major indexes ended higher as investors kept a close watch on US-China trade talks, buoyed by comments from Commerce Secretary Howard Lutnick, who said negotiations were going “really, really well.” A U.S. federal appeals court has upheld President Trump’s sweeping “Liberation Day” tariffs, allowing them to remain in effect while it reviews a lower court’s ruling that blocked them. The US dollar firmed ahead of key US inflation data due later today, which could influence the Fed’s rate outlook. U.S. stock futures drop on Wednesday as traders grew cautious ahead of May’s inflation data: Dow -0.22% ; S&P 500 -0.28% ; Nasdaq -0.33% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Japan’s producer prices rise 3.2% Y/Y in May, the least in 8 months China’s May CPI declines fourth consecutive month, PPI deflation eases to two-year low China’s trade surplus widens amid weaker exports and deeper import slump Japan’s Q1 GDP revised upward, showing no growth but avoids contraction China to send Vice Premier He Lifeng to UK for U.S. trade talks

Source: Seeking Alpha