Most global markets rise as traders eye possible Trump-Xi talks
3 June 2025 11:50
HONG KONG (AFP)Most markets rose Tuesday as investors kept tabs on developments in the China-US trade war as speculation swirled that the countries' leaders will hold talks soon.After a period of relative calm on tariffs, Donald Trump at the weekend accused Beijing of violating last month's deal to slash huge tit-for-tat levies, and threatened to double tolls on steel and aluminium.The moves jolted Asian markets on Monday, but hopes that the US president will speak with Chinese counterpart Xi Jinping -- possibly this week -- has given investors some hope for a positive outcome.Meanwhile, oil prices extended Monday's surge on a weak dollar.Trump has expressed confidence that a talk with Xi could ease trade tensions."They violated a big part of the agreement we made," he said Friday. "But I'm sure that I'll speak to President Xi, and hopefully we'll work that out."The US president's economic adviser Kevin Hassett signalled on Sunday that officials were anticipating something this week. US Treasury Secretary Scott Bessent said at the weekend the leaders could speak "very soon".Officials from both sides are set for talks on the sidelines of an Organisation for Economic Co-operation and Development ministerial meeting in Paris on Wednesday.Ahead of the gathering, the OECD said it had slashed its 2025 growth outlook for the global economy to 2.9 percent from 3.1 percent previously expected. It also said the US economy would expand 1.6 percent, from an earlier estimate of 2.2 percent.While there has been no movement on the issue, investors in most Asian markets took the opportunity on Tuesday to pick up recently sold shares.
Hong Kong gained more than one percent, while Shanghai returned from a long weekend with gains, even as a private survey showed Chinese factory activity shrinking at its fastest pace since September 2022.
There were also gains in Sydney, Bangkok, Jakarta and Manila, while London, Paris and Frankfurt opened higher.
Tokyo, Singapore, Wellington and Mumbai retreated.
Seoul was closed for a presidential election.
The advances followed a positive day on Wall Street led by tech giants in the wake of a forecast-beating earnings report from chip titan Nvidia.Separately, US Commerce Secretary Howard Lutnick on Monday voiced optimism for a trade deal with India "in the not too distant future", adding that he was "very optimistic".And Japanese trade point man Ryosei Akazawa is eyeing another trip to Washington for more negotiations amid speculation of a deal as early as this month.
Also in focus is Trump's signature "big, beautiful bill" that is headlined by tax cuts slated to add up to $3 trillion to the nation's debt.
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