Asian Markets Rally on US-China Trade Talks Hopes

Asian shares and regional currencies rebounded as hopes rose that upcoming high-level US-China trade talks could ease tensions and potentially lead to new trade deals. Markets across Asia, including Japan, the Philippines, and Thailand, advanced on optimism fueled by reports of imminent US-China negotiations in Switzerland, with investors anticipating a reduction in tariffs that have threatened global economic growth. The Chinese central bank supported this positive sentiment by injecting liquidity and cutting rates to bolster the domestic economy. Meanwhile, the US dollar, after a period of weakness, steadied as Asian currencies like the Taiwan dollar and South Korean won saw significant appreciation amid speculation of trade agreements. Analysts noted that central banks in the region might intervene to moderate currency gains, while the overall market mood remained sensitive to developments in trade policy and currency movements. Despite reassurances, concerns lingered as aggressive US trade rhetoric persisted, highlighting the delicate balance in global financial markets.