Measured Optimism Grows in U.S.-Japan Trade Talks

Signs of progress emerged in U.S. trade negotiations with Japan, as both sides exchanged proposals and discussed potential preliminary deals, although significant differences remain and any agreement would likely serve as a framework for further talks. At the same time, optimism about a possible de-escalation in U.S.-China trade tensions has boosted investor sentiment, with Treasury Secretary Scott Bessent expressing hope for a reduction in tariffs and a shift in economic strategies by both countries. Bessent noted that the current high-tariff situation is unsustainable and suggested that easing trade frictions could provide relief to financial markets. These developments have contributed to a market rebound, as investors respond positively to the prospect of improved international trade relations.