Asia-Pacific Markets Gain on Trade Hopes

Asia-Pacific markets experienced a notable uptick this Wednesday, fueled by optimistic signals regarding the easing of trade tensions between the US and China. This positive sentiment was bolstered by comments from US President Donald Trump, who indicated that tariffs on Chinese goods would not escalate to the previously feared 145%, though he clarified that they would not be entirely eliminated either.

Economic Indicators and Market Performance

Adding to the market's upbeat mood, President Trump reassured investors by stating he has "no intention" of replacing Federal Reserve Chair Jerome Powell. On the economic front, Japan reported an expansion in its services sector for April, alongside a softening in its factory downturn. Meanwhile, Australia saw a slight moderation in private sector growth.

Highlighting the day's market movements, Japan's Nikkei 225 rose 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 gains of 1.45% and 1.49%, respectively. In mainland China, the Shanghai Composite and Shenzhen Composite recorded modest increases. The dollar strengthened slightly against the yen, trading at 141.8480.