Asia stocks rally as China indicates potential US trade talks; HK top gainer

Published 02-05-2025, 10:00 am
© Reuters.

Investing.com-- Most Asian stock markets rose sharply on Friday, tracking overnight gains on Wall Street, with Hong Kong leading the rally after China said it was considering potential trade talks with the U.S.

With mainland China bourses closed for a public holiday, Hong Kong-listed Chinese equities led gains on Friday.

Asian markets also took cues from a strong finish on Wall Street on Thursday, with major corporate earnings in focus.

U.S. stock futures also reflected the upbeat sentiment over signs of easing trade tensions. Futures saw sharp gains in Asian hours, erasing earlier losses after China’s statement.

China considers potential trade talks with US

China on Friday said it was evaluating the possibility of trade talks with the U.S., stating that any dialogue must be based on sincerity and the removal of unilateral tariffs.

China’s commerce ministry noted that Washington has sent signals through various channels seeking to start talks.

China added that if the U.S. wanted to talk, it must show sincerity and cancel the unilateral tariffs.

The Trump administration has also reached out to China to initiate trade talks, a Chinese state-affiliated media outlet reported a day earlier. 

China currently faces hefty tariffs totaling 145%, and has responded with a 125% duty on U.S. goods.

These developments eased concerns of an all-out global trade war.

Hong Kong leads gains; Australia, Japan jump over 1%

Hong Kong’s Hang Seng index surged 1.8% on Friday, with Chinese heavyweights such as Alibaba (NYSE:BABA) Group (HK:9988) and Xiaomi Corp (HK:1810) jumping 4.2% and 5.4%, respectively.

Australia’s S&P/ASX 200 jumped 1.1%. Data on Friday showed that Australian retail sales rose marginally in March, and sales volumes were flat for the first quarter.

Japan’s Nikkei 225 rose 1.2%, while the broader TOPIX index gained 0.3%.

The Bank of Japan held interest rates steady at 0.5% a day earlier, and reduced its growth forecast for the year.

Elsewhere, South Korea’s KOSPI added 0.4%, while Singapore’s Straits Times Index edged up 0.3%.

India’s Nifty 50 jumped 0.8% in early trading amid geopolitical tensions with Pakistan. 

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