Asian Stocks Climb on U.S.-China Trade Optimism and Chip Export Hopes

Asian stock markets rose on Tuesday, driven by renewed optimism over U.S.-China trade negotiations and potential easing of chip export restrictions. Investor sentiment improved after reports suggested U.S. President Donald Trump is considering lifting curbs on semiconductor exports to Beijing, a move seen as a step toward easing tensions.

S&P 500 futures gained 0.5% in Asian trade, buoyed by Trump’s comments that Monday’s trade talks went well and would continue into Tuesday. The talks, held in London, have reignited hopes that the two largest economies will deescalate their trade conflict, following a temporary truce in May.

Chinese equities edged higher, with the CSI 300 and Shanghai Composite gaining 0.2% and 0.1% respectively, while Hong Kong’s Hang Seng rose 0.1%. However, weak Chinese economic data—disappointing May exports and cooling inflation—tempered overall market enthusiasm.

A Wall Street Journal report said Trump authorized Treasury Secretary Scott Bessent’s team to negotiate easing recent tech restrictions in exchange for China scaling back rare earth export controls. China remains a dominant supplier of these critical minerals.

Broader Asian markets advanced on trade optimism and strength in U.S. tech stocks, particularly chipmakers. South Korea’s KOSPI jumped 1% to an 11-month high, extending gains after the liberal party's recent election victory. Japan’s Nikkei 225 and TOPIX rose 1% and 0.5%, respectively, following strong GDP data. Australia’s ASX 200 climbed 0.8%, nearing a record peak.

Singapore’s Straits Times index was flat, while Gift Nifty 50 Futures inched up 0.1%, suggesting a positive open for Indian equities.

Investors now turn their focus to key U.S. consumer inflation data due Wednesday, which could influence future Federal Reserve policy moves.