Asian markets climb on trade optimism as Nikkei approaches record high
Asian stocks extended gains on Thursday, buoyed by upbeat earnings and growing hopes for trade deals between the U.S. and major partners. Japan’s Nikkei 225 is now within striking distance of its all-time high, leading a region-wide rally.
MSCI’s index of Asia-Pacific shares outside Japan rose 0.4%, hitting its highest level in nearly four years after U.S. stocks closed at record highs. Japan’s Topix and Singapore’s STI both broke past previous resistance levels, with the Nikkei continuing its upward momentum, News.Az reports, citing Reuters.
Investor sentiment strengthened after the U.S. announced trade agreements with Japan, the Philippines, and Indonesia earlier this week. Market watchers now expect a potential deal with the European Union, despite U.S. President Donald Trump's threat of 30% tariffs on EU goods.
“There’s nothing like a major trade deal to boost market confidence,” said Gavin Friend, senior market strategist at NAB. “With multiple agreements this week and more possibly on the horizon, risk appetite is back.”
Markets remained cautious, however, after news broke that President Trump plans to visit the Federal Reserve on Thursday—a move seen as highly unusual and potentially aimed at pressuring the central bank. The Fed is expected to keep rates steady at its upcoming meeting.
"The timing raises questions," said OCBC’s Vasu Menon. "It could be a strategic push for a rate cut ahead of the next policy decision."
The euro held firm at $1.1774 ahead of a European Central Bank meeting later today. Analysts expect the ECB to pause after seven consecutive rate cuts, though another cut could be on the table before the year ends.
Currency and commodities check
U.S. 10-year Treasury yield: Steady at 4.39%
Dollar vs Yen: Down 0.31% to 146.03
Dollar Index: Down to 97.156, continuing a sharp slide this year
Oil: Up 0.52% to $65.59 as crude inventories fell more than expected
Gold: Slightly lower at $3,382.79/oz as easing trade tensions reduced safe-haven demand
So far, 85% of S&P 500 companies that have reported earnings have beaten expectations, according to LSEG. Positive outlooks from Asian firms like South Korea’s SK Hynix and India’s Infosys are also helping to ease investor nerves around global trade tensions.
With trade talks between Washington and Brussels ongoing and key central bank decisions approaching, investors are watching closely. For now, the bullish trend continues, powered by a mix of earnings strength and geopolitical breakthroughs.
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