Asian stocks rebounded on Thursday amid hopes of U.S. tariff negotiations, while focus was squarely on Bank of Korea’s interest rate decision, Japanese trade data and Australia’s jobs report.
In corporate news, investors awaited Taiwan Semiconductor Manufacturing Co’s (TSMC) (TW:2330) first-quarter earnings due later in the day, to gauge the health of the chip manufacturing industry.
Major U.S stock indexes closed sharply lower on Wednesday, while futures tied to these benchmark indexes rose in Asian trading on Thursday.
U.S. President Donald Trump said “big progress” was made during a meeting with a Japanese trade delegation in Washington on Wednesday, as the two nations opened talks aimed at resolving tensions over a wave of U.S. tariffs.
The talks mark the start of formal negotiations to reach a bilateral trade deal amid growing concerns over the economic fallout from U.S. tariffs.
Additionally, a Bloomberg report on Wednesday showed that China is open to beginning trade talks with the Trump administration, but is demanding that the White House show more respect.
These developments alleviated some concerns, although investors still remained on edge.
Japan’s Nikkei 225 led gains with a 1.1% jump. The broader TOPIX index also added 1%.
Australia’s S&P/ASX 200 rose 0.5%, while Singapore’s Straits Times Index gained 0.6%
China’s Shanghai Composite edged 0.2% higher, while the Shanghai Shenzhen CSI 300 was largely muted.
Hong Kong’s Hang Seng index jumped 1.7%.
India’s Nifty 50 opened 0.4% lower.
The Bank of Korea (BOK) on Thursday maintained its benchmark interest rate at 2.75%, aligning with market expectations.
This decision reflects the central bank’s cautious approach amid escalating global trade tensions.
The central bank indicated a potential rate cut as early as May in response to escalating economic risks from U.S. President Donald Trump’s aggressive tariff measures.
South Korea’s KOSPI advanced 0.7%, in line with broader Asian markets.
Data on Thursday showed that Japan’s exports rose for a sixth consecutive month in March, driven by companies rushing shipments ahead of potential U.S. tariffs announced on April 2.
Exports grew 3.9% year-on-year, below the 4.5% forecast and easing from February’s 11.4% gain.
In Australia, data showed that the country’s labor market remained hot with a rebound in employment and a slightly higher unemployment rate.
The total number of employed people rose by 32,200 in March, in contrast with a 52,800 decline in February.
The unemployment rate rose to 4.1% in January, from 4.0% in Feb, but was below forecasts of a 4.2% growth.
