The Asian stock market rose on Thursday, while the U.S. dollar rose slightly after U.S. President Donald Trump noted “big progress” in tariff talks with Japan on Wednesday, despite tariff uncertainties keeping markets on edge.
Investor focus was also on Federal Reserve Chair Jerome Powell’s latest comments, where he warned of the risk of slowing growth and rising prices due to tariffs.
Japan’s Nikkei rose 0.95 percent to 34,241.85 while the yen weakened as Japan kicked off trade talks with the United States. Trump unexpectedly joined the negotiations with Japan and declared “big progress” in the discussions.
The Asian stock market also saw South Korea’s SE KOSPI Index rise 0.90 percent to 2,469.43 while the broader Topix index gained 1.08 percent to 2,525.04. Meanwhile, Hong Kong’s Hang Seng Index gained 1.07 percent to 21,282.12.
U.S. tech stocks dip
Focus also remained on U.S. tech stocks, which witnessed notable declines in the previous session. Nvidia shares fell 6.87 percent, Apple declined 3.89 percent to $194.27, and Microsoft lost 3.66 percent to $371.61. In addition, Alphabet was down 2 percent to $155.5, Tesla decreased 4.94 percent, Meta was down 3.68 percent, and Amazon fell 2.93 percent to $174.33.
The S&P 500 declined 2.24 percent to 5,275.70 while the Nasdaq dipped 3.07 percent. The Dow Jones Industrial Average also fell 1.73 percent.
The U.S.-Japan trade talks come after Trump hit the country with 24 percent tariffs, which have now been paused for 90 days. However, a 10 percent global rate remains in place, in addition to a 25 percent levy on cars, a key sector in Japan’s export-dependent economy.
Notably, Italy’s Prime Minister Giorgia Meloni is heading to the White House on Thursday to discuss tariffs imposed on the European Union with Trump, while Treasury Secretary Scott Bessent has invited South Korea’s finance minister to Washington for talks next week.
The stock market now has hope in trade talks following the positive outcome with Japan.
Read: Oil prices rise to $66.57 on tighter supply prospects as some OPEC members pledge more cuts
Global chip stocks in focus
Market focus now shifts to the earnings forecast of the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co, to gauge the health of the chip industry. The company’s shares were trading 0.94 percent lower ahead of the release, in line with the broader Taiwanese stock market.
Global semiconductor stocks fell on Wednesday after ASML warned that tariffs were increasing uncertainty around its outlook for 2025 and 2026. Further weighing on market sentiment was Nvidia’s warning of a $5.5 billion hit after Washington restricted exports of its AI processor tailored for China.
In commodities, Brent crude futures were up 1.09 percent to $66.57, and U.S. West Texas Intermediate crude rose 1.36 percent to $63.32. Both benchmarks settled 2 percent higher on Wednesday, recording their highest levels since April 3, and both are on track for their first weekly rise in three weeks.
Meanwhile, spot gold gained 0.33 percent to $3,340.28, as of 4:06 GMT, after touching a record high of $3,357.4 earlier in the session. U.S. gold futures rose 0.24 percent to $3,354.34.
