Asia stocks rise, China leads gains on U.S. trade progress

Investing.com-- Most Asian stocks rose on Wednesday, with Chinese markets in the lead amid optimism over a trade framework agreement with the U.S., although investors were still awaiting more details on trade talks. 

Regional markets tracked overnight strength in Wall Street, as heavyweight technology stocks rose on reports that ongoing U.S.-China negotiations will see the lifting of some U.S. curbs on tech exports to China. 

But S&P 500 Futures fell in Asian trade after an appeals court ruled that President Donald Trump’s trade tariffs can remain in place as it reviews an earlier ruling that attempted to block his tariff plans.

U.S. markets were focused squarely on key consumer price index inflation data due later in the day.  

Chinese stocks rise on U.S. trade framework; more details awaited 

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 1% and 0.7%, respectively, while Hong Kong’s Hang Seng index added 0.9%. 

Chinese markets were buoyed by hopes of improving trade relations with the U.S., especially after Tuesday’s announcement of a trade framework. The announcement comes after two days of high-level trade talks in London. 

Both U.S. and Chinese officials said the framework set a positive tone for future trade talks, and that they will present the framework to Trump and Chinese President Xi Jinping for further approval. 

U.S. officials said they were confident the framework will help ease Chinese curbs on rare earth exports, which have been a major point of concern for markets in recent weeks. But no concrete agreement on the matter was announced.

A lack of broader details on the framework left investors wanting, limiting bigger gains in Chinese markets. Asian markets also took limited support from the announcement. 

Asian tech advances on U.S.-China chip hopes 

Asian technology stocks, particularly those with heavy exposure to the chipmaking industry, advanced on Wednesday amid hopes that the U.S. will scale back its curbs on chip and tech exports to China.

Such a move could reopen China’s massive chips market, which has been a major source of demand in recent years, despite Biden-era curbs on chip exports. 

South Korea’s KOSPI rose 0.6% to a fresh 11-month high. Memory chip giant SK Hynix Inc (KS:000660) was the top boost to the index, rallying more than 3%. 

Japan’s Nikkei 225 rose 0.4% on some gains in tech, although other Japanese sectors were pressured by increasing uncertainty over economic growth, inflation, and the Bank of Japan’s plans for interest rate hikes. 

Japan’s TOPIX index was flat. 

Among broader Asian markets, Australia’s ASX 200 rose 0.3%. Building services firm Johns Lyng Group Ltd (ASX:JLG) soared over 20% after it confirmed that it had received a takeover offer from Pacific Equity Partners. But details of the agreement were not revealed. 

Singapore’s Straits Times index fell 0.4%, as investors in part locked-in recent gains in local bank stocks and pivoted into more cyclical sectors. 

Gift Nifty 50 Futures for India’s Nifty 50 index fell 0.1%, pointing to a soft open for the index after it ended flat on Tuesday.