Asia markets advance after Wall Street boost on hopes for US-China trade deal; U.S. futures surge as Trump confirms Powell will stay

Asia-Pacific stocks trade higher on Wednesday following an upbeat performance on Wall Street overnight, driven by hopes of easing US-China trade tensions. Investors remain cautious amid fears of prolonged talks and potential recession risks, as finance leaders gather in Washington for IMF and World Bank spring meetings. Gold prices eased to around $3,340 per ounce on Wednesday, extending its retreat after briefly hitting a record high of $3,500 in the previous session. Bitcoin ( BTC-USD ) traded firmly above $93,000 on Wednesday after rallying about 10% over the previous two sessions Japan ( NKY:IND ) rose 1.87% to around 34,980 while the broader Topix Index jumped 2.3% to 2,590 on Wednesday, with Japanese shares hitting a three-week-high. The Japanese yen traded around 142 per dollar on Wednesday after losing over 1% in the previous session, weighed down by a rebound in the dollar. In Japan, fresh data added a domestic boost, showing private sector activity returned to growth in April after a contraction in March . The recovery was led by a robust expansion in the services sector. China ( SHCOMP ) rose 0.17% to around 3,310 while the Shenzhen Component climbed 0.4% to 9,909 on Wednesday, extending recent gains amid hopes for de-escalation in the US-China trade war, and the offshore yuan steadied around 7.30 per dollar on Wednesday amid signs of a potential easing in US-China trade tensions. President Trump signaled a softer stance on the U.S.-China trade war, saying the current 145% tariffs on Chinese imports will come down "substantially" after a deal is reached. "It will come down substantially, but it won't be zero," Trump said in the Oval Office. His remarks came shortly after Treasury Secretary Scott Bessent described the current tariff standoff with China as “unsustainable,” fueling hopes for a de-escalation in trade tensions. The International Monetary Fund has slashed its 2025 GDP projections for China and Japan to 4% and 0.6%, respectively, down from its January forecasts of 4.6% and 1.1%. Investors are also closely watching the upcoming Politburo meeting for policy signals, with Citi expecting the session to take place later this week. Hong Kong ( HSI ) rose 2.41% to a near 10-week peak of 21,904 in Wednesday morning trade, rising for a third straight session. India ( SENSEX ) rose 0.13% to 79,805 in early deals on Wednesday, continuing their bullish momentum for the seventh consecutive session. Additionally, preliminary data showed that India's private sector grew in March at the fastest pace in eight months. The HSBC India Manufacturing PMI rose to 58.4 in April 2025 from 58.1 in the previous month, according to preliminary estimates. However, the IMF's revised forecast for India's GDP growth capped gains, with the agency lowering its economic outlook for the country to 6.2% from 6.5% for FY2025- 26. Australia ( AS51 ) rose 1.48% to above 7,900 on Wednesday, reaching a three-week-high. The Australian dollar climbed to around $0.64 on Wednesday, rebounding from the previous session’s losses, as signs of easing US-China trade tensions lifted market sentiment. April figures showed Australia's private sector activity expanded for the seventh consecutive month , driven by strong gains in both manufacturing and services sectors. In the U.S., on Tuesday, all three major indexes ended higher as hopes for a de-escalation in the US-China trade war lifted investor sentiment after a sharp selloff the previous day U.S. stock futures surged on Wednesday after President Donald Trump confirmed he has no plans to remove Federal Reserve Chair Jerome Powell: Dow +1.12%; S&P 500 +1.47%; Nasdaq +1.71%. Looking ahead, markets are focused on upcoming US PMI reports, which could offer fresh insights into the strength of the economy. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Japan's manufacturing PMI returns to growth in April; services PMI picks up from 5-month low Australia's manufacturing PMI at 2-month low in April to 51.7 People’s Bank of China keeps LPR rate steady for 6th month Japan sees relief in trade tensions, China snaps eight-day winning streak Japan core inflation rate accelerates in March