Asian stocks climb as Wall Street rally continues

Asian stock markets tracked overnight Wall Street gains on Wednesday, buoyed by signs of a resilient U.S. economy and growing optimism over U.S.-China relations. South Korean equities and the won led regional advances, following the election of Lee Jae-myung as the country's new president, ending months of political deadlock.

Investor sentiment was lifted by speculation that U.S. President Donald Trump and Chinese President Xi Jinping may speak this week, fueling hopes of easing trade tensions between the world’s two largest economies. However, uncertainty remained as Trump’s recently announced tariffs on steel and aluminum imports were set to take effect later in the day, underscoring the volatility of U.S. trade policy.

Wall Street’s upbeat tone came after data showed U.S. job openings unexpectedly rose in April, alleviating fears about the economic impact of Trump’s protectionist measures. The job data arrives ahead of Friday’s crucial non-farm payrolls report, a key indicator for the Federal Reserve as it weighs future interest rate moves amid slowing growth and inflation concerns.

Stephen Innes of SPI Asset Management noted that while economic growth appears to be faltering and rate cuts from the Fed are widely expected, investors are still clinging to optimism. “Markets are running on hope—hope that U.S.-China relations will warm up,” he said. “Tariffs, once feared, now seem like a less threatening presence.”

Asian traders are keeping a close eye on any developments from Washington and Beijing, particularly after the White House accused China of backtracking on a recent truce that reduced mutual tariffs.

Adding to market cheer, eurozone inflation data showed a drop to its lowest level in eight months, falling below the European Central Bank’s 2% target—further fueling global risk appetite.

Major Asian indices posted gains: Tokyo rose 1.0%, Hong Kong added 0.5%, and Shanghai climbed 0.3%. Markets in Sydney, Wellington, Taipei, Manila, and Jakarta also advanced.

Seoul’s benchmark index surged more than 2%, entering bull market territory after climbing over 20% from recent lows. The rally followed Lee Jae-myung’s victory in South Korea’s snap presidential election, which concluded six months of political turmoil after the impeachment of former President Yoon Suk Yeol over an attempted imposition of martial law.

Lee’s win has raised expectations for economic reforms to support South Korea’s export-heavy economy, which is vulnerable to U.S. tariffs—especially on steel and aluminum. In his inauguration speech, Lee warned against the dangers of global protectionism and advocated for immediate, though measured, trade negotiations with Washington.

Key Market Figures as of 0230 GMT

Tokyo (Nikkei 225): +1.0% at 37,834.66
Hong Kong (Hang Seng): +0.5% at 23,619.76
Shanghai (Composite): +0.3% at 3,371.20
Seoul: +2.0%+; won strengthened 0.3%
Euro/Dollar: $1.1377 (up from $1.1371)
Pound/Dollar: $1.3524 (up from $1.3518)
Dollar/Yen: 143.91 yen (down from 144.03)
Euro/Pound: 84.13 pence (up from 84.11)
WTI Crude: -0.3% at $63.20/barrel
Brent Crude: -0.3% at $65.45/barrel
Dow Jones (NY): +0.5% at 42,519.64
FTSE 100 (London): +0.2% at 8,787.02

Asian investors now await further clarity on trade talks and Friday’s U.S. employment report to gauge the outlook for the global economy.