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Asian Markets Rally as U.S.-China Relations Ease and Strong Earnings Lift Sentiment

Asian Markets Rally as U.S.-China Relations Ease and Strong Earnings Lift Sentiment. Source: Image by Gerd Altmann from Pixabay

Asian shares surged on Friday, buoyed by upbeat U.S. earnings, easing trade tensions between Washington and Beijing, and renewed optimism for global growth. Japan’s Nikkei led regional gains, jumping 1.2%, while MSCI’s Asia-Pacific index excluding Japan climbed 0.5%. Investor sentiment strengthened after the White House confirmed that U.S. President Donald Trump will meet Chinese President Xi Jinping next week during his Asia tour, raising hopes of progress in trade talks ahead of a looming tariff deadline.

Intel’s quarterly results exceeded market expectations, further boosting confidence in the U.S. corporate earnings outlook. Following the announcement, Intel shares surged in after-hours trading, adding momentum to Wall Street futures, with the S&P 500 e-minis up 0.12%.

Currency markets reflected modest movements, with the U.S. dollar index gaining 0.1% to 99.00, while the euro slipped to $1.161 and the yen weakened to 152.85 per dollar. Investors now await key U.S. consumer price data due Friday, which could influence the Federal Reserve’s next policy decision. Despite the ongoing government shutdown—now in its 23rd day—the Bureau of Labor Statistics confirmed it would release the CPI report to assist in cost-of-living adjustments.

In Asia, Japan’s core consumer inflation rose 2.9% in September, reinforcing expectations that the Bank of Japan may consider tightening policy soon. Newly appointed Prime Minister Sanae Takaichi is also expected to unveil a stimulus plan to bolster the economy.

Oil prices eased after strong weekly gains, with U.S. crude down 0.7% to $61.38 a barrel and Brent at $65.55, following fresh U.S. sanctions on Russian oil giants Rosneft and Lukoil. Meanwhile, bitcoin gained 0.8% to $110,512, and gold edged up 0.3% to $4,138 per ounce, despite heading for its weakest week since May.

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