Asian Shares Advance As World Watches US-Japan Trade Talks

(RTTNews) - Asian stocks advanced on Thursday despite escalating U.S.-China tensions and warnings from Federal Reserve Chair Jerome Powell that trade tensions risk undermining the U.S. central bank's employment and inflation goals.

Oil extended overnight gains after the U.S. issued new sanctions targeting Chinese importers of Iranian oil. Treasuries saw modest buying and the dollar ticked up slightly while gold hovered near record levels.

China's Shanghai Composite index edged up by 0.13 percent to 3,280.34. Beijing said it is ready to restart trade talks with the Trump administration, provided that certain key conditions are fulfilled.

Among the primary demands, China has called for more respect, a consistent trade policy, and attention to its concerns on sanctions and Taiwan.

Hong Kong's Hang Seng index ended 1.61 percent higher at 21,395.14, with property and technology stocks pacing the gainers.

Japanese markets rallied after Trump said negotiators made "big progress" in talks to strike a tariff deal with Japan. A weaken yen also boosted sentiment after the country's chief trade negotiator said currencies weren't discussed.

The Nikkei average jumped 1.35 percent to 34,377.60 while the broader Topix index settled 1.29 percent higher at 2,530.23.

Advantest jumped 3.5 percent and SoftBank rose over 1 percent after Taiwanese chip major TSMC posted first-quarter profit that topped analyst estimates.

Seoul stocks rose as the Bank of Korea kept its interest rate unchanged but hinted at possible cuts in May amid rising economic risks partly spurred by U.S. tariffs.

The Kospi average climbed 0.94 percent to 2,470.41. Hanwha Aerospace rallied 3.6 percent after regulatory changes affected its share issuance.

Australian markets rose notably as higher oil prices following further sanctions on Iran's oil exports boosted energy stocks.

The benchmark S&P/ASX 200 gained 0.78 percent to close at 7,819.10 while the broader All Ordinaries index ended up 0.76 percent at 8,021.90.

Clarity Pharmaceuticals soared 13 percent after it signed a commercial-scale production agreement with Nusano for its radioactive isotope copper-64, which is used in cancer treatment and diagnostic imaging.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.42 percent to 12,118.99.

U.S. stocks posted steep losses overnight as Nvidia and ASML warned about the costly impact of tariffs on the semiconductor chip industry and Fed Chair Jerome Powell cautioned that trade tensions may undermine employment and price stability.

Powell noted the U.S. economy is still in a solid position despite heightened uncertainty and downside risks, adding the U.S. central bank would wait for more economic data before considering any adjustments to the current policy stance.

In economic releases, U.S. retail sales grew by more than anticipated in March, while industrial output declined from a month earlier, separate reports revealed.

The tech-heavy Nasdaq Composite plummeted 3.1 percent, the S&P 500 plunged 2.2 percent and the Dow tumbled 1.7 percent.