Asian stocks traded in a tight range and the yen weakened after US-Japan trade talks advanced, as investors adopt a wait-and-see approach to see how other tariff negotiations unfold.
Japanese shares gained slightly after President Donald Trump said negotiators made “big progress” in talks to strike a deal to avoid higher levies.
The yen weakened after the country’s chief trade negotiator said currencies weren’t discussed. Gold advanced to a record while Treasury yields and a gauge of the dollar inched up.
The progress in discussions with Japan, “while preliminary, offer a small positive signal for markets,” said Rajeev De Mello, a global macro portfolio manager at Gama Asset Management.
“The trajectory of US-Japan trade talks will continue to be closely monitored, not just for their bilateral implications, but also as a potential framework for how the US may approach trade relationships with other allies.”
Moves in Asia came after a nascent calm across global markets was shattered by Federal Reserve Chair Jerome Powell, who signaled a wait-and-see approach to tariffs and and pushed back on hopes he would act quickly to soothe investor fears.
