Asia-Pacific equities largely advanced on Wednesday, buoyed by expectations of progress in U.S.-China trade talks and fresh monetary easing from Beijing. The rebound in sentiment comes just as U.S. Treasury Secretary Scott Bessent and trade representative Jamieson Greer prepare for negotiations with Chinese officials later in the week.
Hong Kong’s Hang Seng Index surged 1.57% after China’s central bank, alongside key regulators, unveiled a raft of interest rate reductions intended to invigorate the nation’s flagging growth amidst persistent trade uncertainty. Mainland equities followed suit, with the Shanghai Composite increasing 0.59% and Shenzhen Composite gained 0.60%.
In Japan, the Nikkei 225 edged higher at the open, but fell shortly after to down slightly by 0.06%. South Korean markets saw similar optimism with the Kospi up 0.47%. Meanwhile, Australia’s ASX 200 edged 0.14% higher in a more subdued session.
The positive mood spilled over into U.S. futures, with contracts tied to the Dow Jones Industrial Average up 273 points or 0.67%, while S&P 500 and Nasdaq 100 futures rose 0.75% and 0.88% respectively. Investors are closely eyeing the ongoing trade developments as well as the upcoming Federal Reserve rate decision, due Wednesday.
This upbeat start to the day in Asia contrasts with Wall Street’s performance overnight on Tuesday, where major indices notched their second consecutive session of losses. The Dow dropped 389.83 points or 0.95%, finishing at 40,829.00. The S&P 500 retreated 0.77% to 5,606.91, and the Nasdaq Composite fell 0.87% to settle at 17,689.66.
