Asian stocks rose on Wednesday, boosted by optimism that Japan could secure lower U.S. auto tariffs in upcoming negotiations. Japan’s Topix Index gained 1%, driving the broader MSCI Asia Pacific Index up 0.3%. The rally was led by automakers, with Toyota Motor Corp. jumping 2.2% ahead of its earnings release on Thursday.
Japan’s chief trade negotiator, Ryosei Akazawa, is traveling to Washington to push for U.S. compliance with the tariff reductions agreed upon in last month’s bilateral trade deal. Markets reacted positively to the news, with investors hopeful that a resolution would benefit Japanese exports and lift regional trade sentiment.
Meanwhile, oil prices rose for the first time in five sessions, while the U.S. dollar index dipped slightly. U.S. Treasuries edged lower, with the 10-year yield rising by 1 basis point to 4.22%.
Equity-index futures in both the U.S. and Europe advanced 0.3%, signaling early optimism for Western markets as well.
In India, stocks were little changed after the country’s central bank kept its benchmark interest rate on hold, as officials weigh the potential economic impact of recent tariff threats from former President Donald Trump. Trump has warned of imminent levies targeting semiconductor and pharmaceutical sectors, causing related stocks in Asia to retreat.
With global trade tensions once again in focus, market participants are closely watching for new developments, especially regarding U.S. tariff announcements expected “within the next week or so,” according to Trump.
