BENGALURU: Most emerging Asian stock markets rose on Wednesday after US and Chinese officials agreed on a framework to put their trade truce back on track, while currencies traded in a tight range as a lack of specifics kept investors cautious.
Negotiators from the Washington and Beijing reached an agreement that would resolve China’s export restrictions on rare earth minerals and magnets, and remove some US export restrictions that were recently put in place.
The specific details of the framework remain sparse and will be presented to both countries’ leaders for approval. “Perhaps this is a move towards less protectionist measures and more cooperation, and that has helped support sentiment that trade risks might be fading,” said Jeff Ng, head of Asia Macro Strategy at SMBC.
MSCI’s index of Asian emerging market equities rose as much as 0.9% to a more than three-year high. It was up for a seventh consecutive session, the longest such streak since September 2024.
Equities in Taipei climbed 1% to a one-month high, while those in Kuala Lumpur and Manila advanced 0.5% each.
Meanwhile, renewed hopes of easing trade tensions, coupled with strong foreign capital inflows on optimism around new President Lee Jae-myung’s pro-growth policies, helped South Korean shares advance 1.2% to their highest level since January 2022.
Regional currencies, however, were largely subdued as a lack of details from the Sino-US trade talks deterred investors from committing to significant positions.
Adding to the caution, a US federal appeals court allowed President Donald Trump’s sweeping tariffs to remain in effect, while it reviews a lower court decision blocking them.
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