Asian Market Rallies; Investors Await Key Developments in US-China Trade Deal

Asian markets cheered with gains today as investors keep a close watch on U.S.-China trade talks, which were set to continue for a second day.

Both the counterparts held talks in London yesterday, wherein U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer were present alongside Beijing’s Vice Premier He Lifeng.

Christian Floro, market strategist at Principal Asset Management said that “market backdrop will remain uncertain in the period ahead,” in light of the “fluid nature of trade policy.”

While urging investors to brace for continued market volatility Floro noted that now is an opportune time to look at “previously overlooked value-oriented stocks and international equities.”

He advised investors to look forward to domestic stocks, including utilities, real estate and financials, which are less averse to trade-related shocks. Opportunities can also be sought in software and internet companies, Floro added in a Tuesday note.

On the Asian markets front, Japan’s Nikkei 225 jumped 0.92%, while the broader Topix index was up by 0.43%. South Korea's Kospi index was up by 0.42%, while the small-cap Kosdaq added 0.77%. Hong Kong’s Hang Seng Index rose 0.33%.

As per Reuters, US stock futures soared in Asian hours, after President Donald Trump said that the talks with China were going well and he was “only getting good reports.”

S&P went up by 0.09% to settle at 6,005.88. The Nasdaq Composite jumped 0.31% to close at 19,591.24. Dow Jones Industrial Average tumbled 1.11 points to close at 42,761.76.