Asian Stocks Surge Amid U.S.-China Tariff Truce Extension
Asian stock markets responded positively to the extended tariff truce between the U.S. and China, with Japan's Nikkei reaching record highs. Investor sentiment is bolstered by expected rate cuts and resilient U.S. earnings, while global markets await key inflation data and geopolitical developments.
On Tuesday, most Asian stock markets rose, gaining momentum from an extension of the tariff truce between the world's two major economies, the United States and China. Japanese shares reached an all-time peak, driven by a surge in tech stocks after returning from a long weekend break.
The move by U.S. President Donald Trump to extend the tariff truce for another 90 days averted significant duties on Chinese goods. This was anticipated by investors, who have been cautiously optimistic amidst expectations of U.S. Federal Reserve rate cuts and steady U.S. corporate earnings.
Japan's Nikkei index surged 2% as the country resumed trading following a public holiday, while Australia's benchmark hit a record high ahead of a likely interest rate cut by the central bank. Global markets await U.S. inflation data release and a crucial summit between U.S. and Russian leaders, with potential implications for commodities and emerging markets.
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