Asian Shares Advance As Trade Talks Progress

(RTTNews) - Asian stocks advanced on Friday amid signs the Trump administration is making progress on trade negotiations and that the U.S. Federal Reserve may cut interest rates earlier than expected, if labor and growth data weaken notably.

Treasury yields gained and the dollar edged up, pushing gold prices down over 1 percent to around $3,300 per ounce.

Crude oil futures headed for a weekly loss due to expectations of increased OPEC+ supply and renewed hopes for peace in Ukraine.

China's Shanghai Composite index finished marginally lower at 3,295.06 as Beijing denied the existence of negotiations on a deal with the U.S. and demanded that the U.S. revoke all unilateral tariffs.

Hong Kong's Hang Seng index edged up by 0.32 percent to 21,980.74 on hopes that high tariff rates between the world's two largest economies will be reduced through negotiations.

Comments from two Fed officials about cutting interest rates also helped lift investor mood.

Japanese markets led regional gains as the government unveiled emergency economic measures to counter the impact of U.S. tariffs, ahead of a second round of bilateral trade talks with Washington to be held next week.

Investors also reacted to data that showed Tokyo inflation grew more than expected to a two-year high in April amid a recovery in private spending.

The Nikkei average soared 1.90 percent to 35,705.74 while the broader Topix index settled 1.37 percent higher at 2,628.03.

The yen weakened against the dollar as Finance Minister Katsunobu Kato said specific currency levels or targets didn't come up in his talks with U.S. Treasury Secretary Bessent.

Tech investor SoftBank rallied 2.9 percent, Advantest surged 4.6 percent and Tokyo Electron climbed 4.2 percent after lawmakers in the lower house passed a bill to promote the development of artificial intelligence technology and take steps to mitigate its risks.

Seoul stocks rallied as U.S. Treasury Secretary Scott Bessent said the U.S. and South Korea had a "very successful" meeting during the first round of trade talks and that technical terms will be discussed as early as next week.

Seoul's delegation said a deal aimed at removing new U.S. tariffs is likely before the pause on reciprocal tariffs is lifted in July.

The Kospi average jumped 0.95 percent to 2,546.30, with tech shares and shipbuilders leading the overall gains. SK Hynix jumped 3.4 percent, HD Hyundai Heavy Industries climbed 7.2 percent and Hanwha Ocean soared 11.1 percent.

Australian and New Zealand stock markets were closed for ANZAC Day holiday. U.S. stocks rose overnight as chipmaker Texas Instruments gave a better-than-anticipated forecast, and traders hoped for favorable outcome from ongoing trade negotiations.

In economic releases, jobless claims rose in line with expectations last week and durable goods orders surged much more than expected in March, driven almost entirely by a 27 percent jump in transportation equipment, while sales of existing homes logged the biggest monthly drop since 2022 in March due to economic uncertainty and high home prices, separate reports revealed.

The tech-heavy Nasdaq Composite soared 2.7 percent and the S&P 500 rallied 2 percent to extend gains for the third day in a row while the Dow advanced 1.2 percent.