Stock Market

Asian Stocks Rise on Trump’s Tariff Reluctance

Asian equities rose, with Chinese stocks leading gains after comments from US President Donald Trump hinting at a potentially softer approach toward tariffs on China.

The yen strengthened after the Bank of Japan raised interest rates.

A gauge of Chinese stocks in Hong Kong jumped while the dollar weakened and the yuan extended gains after Trump said in an interview with Fox News that he would rather not have to use tariffs against the world’s second-largest economy.

“Price action will be volatile because those negotiations may not lead to success,” said Alvin Tan, an FX strategist at Royal Bank of Canada in Singapore.

“But the situation is definitely turning away from the worst-case fears regarding US tariffs. It’s still very early days, and Trump is mercurial, but it does increasingly appear that US trade policy on China is on the negotiating table.”

Assets often seen as proxies for China also reacted, with the Australian dollar gaining 0.5%. But some recommended caution in interpreting the US President’s comments.

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