Asian Stocks Rise on Hopes of New Trade Deals
Asian stock markets rallied for the sixth consecutive day, boosted by hopes of further trade deals from the United States. The MSCI Asia regional stock index rose 0.7%, posting its longest winning streak since January. In Japan, the stock index jumped more than 1.3% at the opening of trading, while the US S&P 500 index closed up 0.8%, setting a third consecutive daily record close. This positive performance reflects market optimism about Washington's pragmatic approach ahead of the August 1 deadline.
News that the US is close to reaching a trade deal with the European Union, following a 15% tariff agreement with Japan, added to the positive sentiment. This agreement is seen as a way to defuse global trade tensions and mitigate the negative impact of tariffs on corporate profits. President Donald Trump stated that he would not set tariffs below 15% as a form of "reciprocal" tariffs before the deadline. Trump's negotiators also mentioned that Japan's $550 billion investment model in the US could serve as a model for the EU.
Shares of several major companies showed mixed reactions. Alphabet Inc. shares rose in after-hours trading after reporting earnings that beat expectations. However, Tesla shares fell 4.4% after CEO Elon Musk warned of "a few tough quarters" ahead, following the biggest sales decline in a decade. Shares of South Korean chipmaker SK Hynix rose 3.3% as its operating profit beat analysts' estimates.
Meanwhile, market participants are also closely monitoring the direction of interest rate policy. Bond traders expect the Federal Reserve to cut rates by 75 basis points next year, a sharp increase from the 25 basis points projected in April. President Trump has urged the Fed to act more quickly, although Treasury Secretary Scott Bessent said there's "no rush" to replace Chairman Jerome Powell. Meanwhile, Nvidia shares rose nearly 1% after Trump said he considered breaking up the company to boost competition for AI chips, but later backed off. (ayu)
Source:v Newsmaker.id
