Asian Stock Markets Rise on Hopes of Easing U.S.-China Tensions
Asian stock markets rose early Tuesday (23/4) on hopes of easing trade tensions between the world's two largest economies and as President Trump said he is not planning to fire Federal Reserve Chairman Jerome Powell.
Japan's Nikkei Stock Average rose 1.8%, South Korea's Kospi added 1.0%, and Australia's S&P/ASX 200 advanced 1.7%.
Speaking at an event in Washington, D.C., on Tuesday organized by JPMorgan, Treasury Secretary Scott Bessent said that he expects the U.S. and China to start de-escalating their trade hostilities in the "very near future," a person in the room told Barron's.
There's a mild risk-on tone on hopes that U.S.-China trade tensions could recede following Bessent's comments, said Matt Simpson, market analyst at FOREX.com and City Index, in a commentary. Bessent also reportedly said that the current status quo of high tariffs is not sustainable, Simpson noted.
Referring to Powell in comments made at the Oval Office, Trump said 'I would like to see him be a little more active in terms of his idea to lower interest rates…but, no, I have no intention to fire him."
Trump's softer tone on Powell came after he lashed out at the Fed chair, writing on social media last week, "Powell's termination cannot come fast enough!"
Oil futures rose amid the positive sentiment. Markets are behaving very differently today, National Australia Bank's Sally Auld said in a podcast, noting developments such as oil prices are back on the rise. Sentiment is being driven by talk from the Trump administration about trade deals getting closer with India and Japan, and how the current impasse between the U.S. and China is unsustainable, the chief economist said.
Front-month WTI crude oil futures were 0.9% higher at $64.26 per barrel and front-month Brent crude oil futures were 0.9% higher at $68.04 per barrel.
Meanwhile, gold fell as prospects of easing U.S.-China tensions undermined the safe-haven appeal of the precious metal. Spot gold 0.6% lower at $3,360.30 per ounce.
Source: Bloomberg
