Asian equity markets posted modest gains in thin holiday trading, as investors adopted a cautious stance ahead of further developments in global trade negotiations.
Japan’s benchmark Nikkei 225 rose 1%, while mainland Chinese shares were little changed after paring earlier losses triggered by a U.S. proposal to impose tariffs on Chinese vessels entering American ports. The New Zealand dollar continued to retreat from a recent five-month high. Many regional markets remained closed due to the Good Friday holiday.
Investor attention remains fixed on country-specific trade discussions, particularly following what was described as “substantial progress” in recent Japan-U.S. negotiations. President Donald Trump expressed confidence in securing a trade deal with the European Union, though uncertainty continues to cloud talks with China, which has reportedly laid out several conditions for reengaging with U.S. officials.
“Trump wasn’t negative on talks with the EU, and the first round of Japan-U.S. negotiations was smooth, with no mention of currency issues,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management. That reassurance helped steady the yen, which was little changed after weakening in the previous session.
Although Trump didn’t offer specifics on an EU trade deal, he confirmed a forthcoming agreement with Ukraine regarding critical minerals, scheduled to be signed next week. Meanwhile, he signaled reluctance to escalate tariffs on China further, citing concerns over potential disruption to bilateral trade, despite the administration’s move to begin imposing levies on Chinese ships docking at U.S. ports—potentially reshaping global shipping routes.
Japanese and South Korean shipping stocks responded positively to the news, with shares of Kawasaki Kisen Kaisha Ltd. and HMM Co. climbing higher.
Trade tensions are also impacting global asset flows. According to Deutsche Bank, Chinese investors are trimming their holdings of U.S. Treasuries, shifting instead toward European bonds, Japanese government debt, and gold as safer alternatives.
In response to market volatility, China’s sovereign wealth fund appears to have intervened to support equities. Exchange-traded funds associated with the so-called “national team” saw a spike in trading activity during the final minutes of several sessions this week.
In corporate developments, shares of Contemporary Amperex Technology Co. (CATL) declined after a U.S. congressional committee urged two American banks to withdraw from the Chinese battery giant’s planned IPO in Hong Kong.
Back in Japan, consumer inflation continued to rise last month, bolstering the central bank’s case for a gradual interest rate hike. Notably, rice prices surged 92.1% year-over-year—the fastest increase on record dating back to 1971.
Meanwhile, in the U.S., equities posted a weekly decline following Federal Reserve Chair Jerome Powell’s resistance to market intervention. President Trump took to social media to criticize Powell and hinted he could remove the Fed Chair if desired, reiterating his belief that the central bank should have already cut rates this year.
