Asian stocks advanced on Friday, and a key gauge of global equities edged closer to another record, boosted by renewed optimism around US-China trade talks and growing expectations for interest rate cuts by the Federal Reserve later this year.
The Asia-Pacific equity index rose as much as 0.7%, reaching its highest level since September 2021, following a strong session on Wall Street. The S&P 500 surged 0.8% on Thursday, moving within reach of an all-time high, while the Nasdaq 100 notched a fresh record.
The rally helped lift the MSCI global shares index to another record peak, as global investors reacted positively to a string of encouraging developments.
Among the most notable catalysts was an announcement by US Commerce Secretary Howard Lutnick, who revealed late Thursday that Washington and Beijing had finalized a mutual understanding on trade, following negotiations last month.
In a parallel development, the US Treasury Department disclosed a landmark tax deal with G-7 nations, under which US firms would be exempted from certain foreign taxes, while the US would drop the “revenge tax” clause from former President Donald Trump’s tax bill.
“There’s a long list of positive headlines right now,” said Chetan Seth, Asia-Pacific equity strategist at Nomura, reinforcing bullish sentiment across the region.
On the day, Japanese stocks posted gains, US futures inched higher, and South Korea’s market saw a slight dip, showing mixed but largely optimistic reactions across the region.
The positive momentum reflects investor confidence that easing geopolitical tensions and favorable monetary policy shifts could support a stronger second half of 2025 for global markets.