Asian equities edged higher on Wednesday as investors took modest comfort in the extension of the US-China tariff truce, which helped avert an immediate escalation in trade tensions between the two global economic powers.
The MSCI Asia Pacific Index rose 0.5%, led by gains in technology stocks. Futures for the S&P 500 advanced 0.2%, rebounding slightly after the index ended a six-day winning streak on Tuesday. European futures also pointed higher, gaining 0.3%.
Meanwhile, the U.S. dollar weakened against all Group-of-10 currencies as markets widely expect the Federal Reserve to hold interest rates steady in its upcoming policy decision. Oil prices remained firm, holding on to their biggest gain in six weeks.
President Donald Trump is expected to make the final decision on whether to maintain the tariff pause with China before the current extension expires in two weeks. A continuation of the truce would signal further stabilization in US-China relations.
Shanghai’s stock market rose 0.5%, while Hong Kong equities slipped, reflecting mixed regional sentiment. Like the muted market reaction to the recent US-EU tariff deal, the extension of the China truce delivered only a modest boost to investor confidence.
Traders are also closely watching key upcoming events, including the Fed’s rate decision and Friday’s US jobs report, both seen as major market catalysts.
