U.S.-China Trade Talks Bring Hope Amid Geopolitical Tensions

U.S. stock futures rebounded and Asian currencies strengthened on Wednesday, sparked by optimism over a forthcoming meeting between leading U.S. and Chinese trade officials, set to occur over the weekend in Switzerland. This meeting is seen as a potential step towards easing the prolonged trade war.

The S&P 500 futures recorded a rise of approximately 0.9%, recovering losses observed during the cash session when U.S. President Donald Trump appeared to adopt a confrontational stance. Meanwhile, stock markets in Japan and Australia saw moderate increases.

The dollar experienced a slight rise against the yen but declined relative to other Asian currencies, with the offshore yuan approaching a six-month high and the Australian dollar reaching a five-month high. National Australia Bank's head of foreign exchange research, Ray Attrill, noted the positive implications for Asian currencies, though geopolitical tensions in Kashmir remain a concern.

(With inputs from agencies.)