The markets of Asian actions operate divided between moderate optimism and caution on Thursday (24), after the government of Donald Trump has outlined a way out of his commercial war with Beijing and Washington assured that the Japanese currency is not one of its “objectives”. The President of the United States mentioned, on Wednesday (23), the possibility of “a real agreement” with China, although concrete negotiations have not started, according to the secretary of the United States Treasury.
The markets of Asian actions operate divided between moderate optimism and caution on Thursday (24), after the government of Donald Trump has outlined a way out of his commercial war with Beijing and Washington assured that the Japanese currency is not one of its “objectives”. The President of the United States mentioned, on Wednesday (23), the possibility of “a real agreement” with China, although concrete negotiations have not started, according to the secretary of the United States Treasury.
China assured that it was open to dialogue with Washington, but denied that there were negotiations in progress. “Any declaration on a turning point in the Sino-American discussions means pure speculation and not based on any concrete fact,” said the spokesman for the Chinese ministry, He Yadong.
This year the commercial tensions between the two largest economies in the world have shot after raising the rates for imports in China, with further 145% on many products, in reaction to the practices that Washington considers unjust. Beijing, in turn, reacted with new customs rates of 125% compared to American products.
On Wednesday, Trump told journalists that his country will get a “fair agreement with China”. When asked if he held conversations with Beijing, the republican president replied: “Everything is active”.
Investors dignity the most conciliatory tone in the United States. The comments of the secretary of the United States have also contributed: Scott Beesent believed that the overloads established by both sides should be reduced as a prerequisite for any discussion and said that “a reduction” from both sides is possible.
Asian bags oscillate
This Thursday, at the Tokyo Stock Exchange, the main Nikkei index increased by 0.48%, at 35,039.15 closing points. Sydney’s bag increased by 0.6%. Seoul, on the other hand, closed 0.13%, after the announcement of an unexpected contraction in the growth of South Korea in the first quarter of 2025, influenced by the impact of commercial tensions on exports to the country.
The Chinese markets hesitated: Hong Kong’s Hang Seng index dropped by 1.21% and the Shanghai index made up of balance +0.03%. Shenzhen lost 0.7%.
“The comments [de Trump e Dessent] They create a favorable climate for the resumption of purchases of risky activities, “says XTB Kathleen Brooks. But” to avoid worsening from the prospects of global growth, an agreement must be achieved quickly, now that Trump seems to review his tariff plans, “he said”. The market is taken from a wave of optimism, “Brooks observes.
“There seems to be a level of instability in the financial markets that the Trump government is not ready to tolerate,” says Mufg Bank’s Lloyd Chan.
However, the declarations of Scott Beesent according to which a Sino-American rebalancing “could request from two to three years”, and the fact that Donald Trump “did not unilaterally proposed any reduction in rates on China”, contribute “in one way, to reduce the optimism of the market”, warns.
In Europe, markets also show prudence and operate under the influence of the publication of a series of budgets of large companies in the blockade. Paris dropped by 0.55% and Frankfurt by 0.34%. London started the 0.06%trading session, while Milan was a slight increase of 0.3%.
Pressure on the Japanese currency
On Wednesday the United States Treasury also indicated that Washington has “no objective for the convertibility rate of Hyenas in relation to the dollar”, in commercial negotiations between the two countries. Donald Trump has repeatedly requested a stronger Yen, claiming that the weakening of the Japanese currency improperly favors the exports of the archipelago and, on the contrary, compromises the sales of American products in Japan.
“The announcement of Bessent according to which the United States did not target Japan’s monetary policy was a silent but significant change” in “an ambivalent rhetorical market,” said Stephen Innes of SPI Asset Management.
Source: Terra
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