Asia-Pacific markets rise, tracking gains on Wall Street amid cooling US-China trade tensions

Asia-Pacific markets traded mostly in rise on Thursday tracking gains on Wall Street and driven by easing concerns over a global trade war, after the US and China adopted more restrained tariff measures, with US President Donald Trump and Chinese President Xi Jinping scheduled for a phone call soon. Japan ( NKY:IND ) rose 0.58% to surpass 39,000, while the broader Topix Index rose 0.7% to 2,764 on Thursday, marking a third consecutive session of gains for Japanese stocks. The Japanese yen strengthened beyond 152 per dollar on Thursday, reaching its highest level in eight weeks, as Bank of Japan board member Naoki Tamura said that the central bank must lift the policy rate to at least 1% in the latter part of fiscal 2025. Meanwhile, investors kept a close eye on the failed merger talks between Honda and Nissan, with Honda proposing an acquisition of Nissan instead. China ( SHCOMP ) rose 0.83% to around 3,235 while the Shenzhen Component gained 0.6% to 10,225 on Thursday, recouping some losses from the previous session, with artificial intelligence and related technology stocks leading the charge. Those gains were driven by enthusiasm around Chinese artificial intelligence startup DeepSeek, which is poised to challenge Western AI leaders. The offshore yuan steadied round 7.28 per dollar, as concerns over escalating U.S.-China trade tensions began to subside. Investors are now focused on China`s upcoming inflation data, which will offer further insights into the country`s economic health. Hong Kong ( HSI ) rose 0.61% to 20,690 on Thursday morning session, shifting from notable losses in the previous session as all sectors moved higher. India ( SENSEX ) fell 0.22% to 78,094 in morning trade on Thursday, retreating for the second straight session, weighed down by consumer durables, real estate, and metals. The Indian rupee ( USD:INR ) hit an all-time low of 87.54 on Thursday amid increased USD buying, driven by the maturity of non-deliverable forward positions, capital outflows, and investor risk aversion. Traders remained cautious, although the RBI is expected to deliver an interest rate cut amid a slowdown in economic growth. Australia ( AS51 ) rose 1.23% to close at 8,521 on Thursday, recovering most of its earlier losses for the week as concerns over a global trade war eased. The Australian dollar held steady around $0.628 on Thursday, after rising for three consecutive sessions, supported by a weaker US dollar. Meanwhile, data revealed that Australia’s trade surplus narrowed in December, as export growth slowed while imports rose at a faster pace. In the U.S., on Wednesday, all three major indexes ended higher , buoyed by a sharp drop in long-term Treasury yields as investors digested a mix of earnings reports and economic data. U.S. stock futures rise on Thursday following gains on Wall Street overnight during a week plagued by tariffs, disappointing tech earnings, and mixed US economic data: Dow +0.22% ; S&P 500 +0.26%; Nasdaq +0.30%. Looking ahead, investors are focusing on quarterly reports from Amazon and other major companies on Thursday, as well as the latest weekly jobless claims. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s services sector growth slows to four-month low in January Japan’s Jan services PMI revised upward to 53; real wages rises for 2nd consecutive month Trump in `no hurry` to speak to China`s Xi Jinping over escalating trade tensions Tit-for-Tat: China hits back with tariffs on U.S. coal and LNG, unveils Google probe U.S. will delay Canada tariffs as countries work on beefing up border security

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