Shares in Japan, which was negotiating with the US for a deal to lower levies, jumped 1.1% while a regional gauge made moderate gains. Treasuries were little changed at the open after yields surged in the prior session, with traders paring bets on interest rates. Bitcoin extended its rally, rising 0.4% to around $103,000. Gold rebounded early Friday after falling in its two previous sessions. The Nasdaq Golden Dragon China Index rose 1% during US trading.
As the US prepared for the start of talks with China — the biggest target of Trump’s tariff onslaught — the president said he believed negotiations might result in tangible progress. Trump pitched his trade framework with the UK as a historic achievement, and the first step in his revolutionary effort to overhaul the global economy after announcing levies last month.
“Tariffs are steering the boat again,” said Louis Navellier, chief investment officer at Navellier & Associates. “We are seeing a risk-on sentiment. The fear of missing out on favorable agreements being reached has limited the number of sellers.”
Trump also said that promising trade news paired with Republican efforts to pass legislation extending and expanding his signature tax cuts should be reason for investor optimism.
Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are set to meet in Switzerland with Chinese Vice Premier He Lifeng on trade in the coming days. Trump said that if talks went well, he could consider lowering the 145% tariff he has imposed on many Chinese goods.While the real game-changer would be progress with China, that’s where it gets murky, according Fawad Razaqzada at City Index and Forex.com.“The weekend meeting between the US and China feels more like a diplomatic icebreaker than a breakthrough moment,” Razaqzada noted. “We could be in for a long, drawn-out negotiation season, which may limit the upside potential for risk assets.”
Key data set for release in Asia included April trade data in China. Elsewhere, India said it “neutralized” Pakistani drone and missile attacks targeting several military sites on Thursday night, marking an escalation in hostilities between the two nuclear-armed neighbors.
In commodities, oil climbed, reflecting optimism about the potential for further US trade deals.
