This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets climbed Wednesday as trade discussions between the U.S. and China led to an agreement, representatives from both sides said.
The deal is now awaiting a nod from the leaders of the two countries.
“We have reached a framework to implement the Geneva consensus and the call between the two presidents,” Lutnick told reporters. That echoed comments made to reporters by Li Chenggang, China’s international trade representative and a vice minister at China’s Commerce Ministry.
The talks had continued for a second day in London on Tuesday. U.S. Treasury Secretary Scott Bessent said he was departing the ongoing trade talks, but Lutnick and U.S. Trade Representative Jamieson Greer would remain to continue the negotiations. Discussions could extend into Wednesday if needed, Lutnick said previously.
Mainland China’s CSI 300 index advanced 0.75% higher to close at 3,894.63 while Hong Kong’s Hang Seng Index rose 0.79%.
Japan’s benchmark Nikkei 225 added 0.55% to end the trading day at 38,421.19 while the broader Topix index was flat at 2,788.72.
In South Korea, the Kospi index advanced 1.23% to close at 2,907.04, its highest since January 2022 according to LSEG data. The small-cap Kosdaq popped 1.96% to close at 786.29.
Australia’s S&P/ASX 200 increased by 0.06% to close at 8,592.1 after briefly hitting a new high earlier in the session.
The Nifty 50 traded 0.43% higher.
U.S. stock futures were near the flatline in early Asian hours, as investors waited for more insight on trade discussions, as well as the release of May’s U.S. consumer inflation report.
Overnight stateside, all three key benchmarks rose on hopes for a positive resolution on the trade talks.
The Dow Jones Industrial Average added 105.11 points, or 0.25%, and closed at 42,866.87. The S&P 500 rose 0.55% to end at 6,038.81, while the Nasdaq Composite gained 0.63% and settled at 19,714.99. It was the third positive session for both indexes.
— CNBC’s Kevin Breuninger, Pia Singh, Alex Harring contributed to this report.
Dollar divorce? Asia’s shift away from the U.S. dollar is picking up pace
Asia is progressively moving away from the U.S. dollar, as a mix of geopolitical uncertainties, monetary shifts and currency hedging prompt de-dollarization across the region.
Recently, the Association of Southeast Asian Nations, or ASEAN, committed to boosting the use of local currencies in trade and investment as part of its newly released Economic Community Strategic Plan for 2026 to 2030. The plan outlined efforts to reduce shocks associated with exchange rate fluctuations by promoting local currency settlements and strengthening regional payment connectivity.
“Trump’s erratic trade policy decisions and the dollar’s sharp depreciation are probably encouraging a more rapid shift towards other currencies,” said Francesco Pesole, FX strategist at ING.
While the shift is more pronounced in Asia, the world has also been cutting its reliance on the greenback, with the share of the dollar in global foreign exchange reserves declining from over 70% in 2000 to 57.8% in 2024. More recently, the greenback also saw a steep selloff this year, particularly in April, following uncertainty around U.S. policymaking. Since the start of the year, the dollar index has weakened by over 8%.
Read the full story here.
—Lee Ying Shan
Chinese stocks rise on news of U.S.-China trade deal
Chinese stocks advanced Wednesday, reversing course from losses in the previous day, following news of the U.S. and China reaching a trade agreement.
As at 11.43 a.m. local time, Mainland China’s CSI 300 index had risen 0.83% to 3,897.30, its highest level since May 23.
Meanwhile, the Hang Seng China Enterprises Index, which captures the performance of mainland China stocks listed in Hong Kong, popped 1.05%, also reversing course from the losses in its previous session.
Among the top three performing stocks on the index were Tencent, which surged 0.58%, BYD, which gained 1.72% and Alibaba which rose 1.42%.
The Hang Seng China Enterprises Index ETF reflects the day’s moves:
— Amala Balakrishner
China, India and Japan are preferred investment destinations: M&G
The three largest markets in Asia – China, India and Japan – are “very appealing” to long-term investors for very different reasons, Vikas Pershad, portfolio manager at M&G Investments told CNBC’s ‘Squawk Box Asia’ on Wednesday.
Pershad attributed Japan’s attractiveness to its corporate governance transformation. Though it is “still in early innings … it is making a lot of progress that’s going to be around for a very long time.”
The country’s intellectual property, capital, and deepening economic ties with India will only grow in importance, he added.
India, meanwhile, remains a cornerstone of Pershad’s portfolio. He said that the country’s listed companies continue to deliver the highest earnings growth in the world, along with the highest returns on equity globally — which he described as “a rare combination in a yield-starved world”.
China is also increasingly attractive on a valuation basis despite geopolitical headwinds, he added, as its strong fundamentals and “resilient top-lines” have positioned companies there in favorable light for investors.
Though the structural shift toward “China plus one” sourcing strategies is underway, he noted that the country remains central to global supply chains, with India being well-positioned to benefit from the eventual realignment.
— Celestine Iyer
South Korean stocks extend rally for sixth consecutive session
South Korean stocks extended their rally for a sixth consecutive session Wednesday, amid gains across Asia-Pacific markets as investors welcomed the positive outcome from U.S.-China’s trade negotiations.
As of 12.37 p.m. local time, the Kospi index had risen 0.7% to 2,892.02, after briefly hitting 2,987.34 earlier in the session which was its highest level since Jan. 18, 2022.
Meanwhile, the small-cap Kosdaq index was last seen trading up 1.7% at 784.30, its highest since Aug. 20 2024.
Among the index heavyweights, Samsung Electronics was last seen up 0.76%, while SK Hynix added 3.69%.
— Amala Balakrishner
‘The world has been asleep’ while China built an absolute monopoly in rare earths: Victory Metals CEO
U.S. Commerce Secretary Howard Lutnick has signaled that the new framework agreement between the U.S. and China could clarify restrictions surrounding rare earths and magnets.
Heavy rare earths such as scandium and hafnium are particularly valued for their applications in clean energy, aerospace, and defense technologies.
While the U.S. does maintain some strategic stockpiles, its current reserves fall far short of the long-term needs of its defense contractors, making China’s dominance in the rare earth supply chain a significant point of vulnerability.
“The world has been asleep” while China has built an absolute monopoly in rare earths, Brendan Clark, CEO of Australia-based Victory Metals told CNBC’s ‘Squawk Box Asia’ on Wednesday.
Still, he noted that the ongoing dialogue around rare earth security has meaningfully shifted the focus into mining processes.
Emphasizing the need to invest in downstream capabilities and expand domestic mining operations, Clark added that public and private forays into the space is set to increase.
The U.S. Department of Defense has also set a target to phase out the procurement of certain China-made magnets by 2027, as part of a broader push to de-risk supply chains critical to national security.
— Celestine Iyer
Australian stocks extend gains to fresh record high
Australian stocks extended their gains for a second day, surpassing their record-high close from the previous session.
The 200-stock benchmark S&P/ASX 200 rose 0.46% to 8,626.9 as at 10.57 a.m. Australian Eastern Standard Time.
The benchmark’s strong moves come as trade negotiations between the U.S. and China are showing signs of progress.
China is the top export destination for Australian goods, and investors are hoping that a positive outcome from the trade talks would spur economic activity down under.
Gains were led by stocks in the banking, mining and energy sectors.
The country’s big four banks rallied, with shares in National Australia Bank gaining 0.46%, Commonwealth Bank adding 0.37%, Macquarie Group up 0.35%, and Westpac Banking up 0.3%.
In the energy sector, shares in Woodside Energy and Santos, two of Australia’s top oil and gas companies, increased 2.23% and 1.05%, respectively.
Elsewhere, shares in major miners rose, thanks in large part to an increase in spot gold. BHP Group surged 1.91%, Fortescue advanced 1.72% and Rio Tinto moved up 0.45%.
— Amala Balakrishner
