Asian stocks saw modest gains on Thursday, with Japan leading the region on renewed hopes of U.S. trade dialogue. Investors remained cautious, reassessing optimism over a potential de-escalation in the U.S.-China trade war after mixed signals from Washington.
Japan's Nikkei 225 rose nearly 1%, while the TOPIX added 0.8%, driven by reports that Economic Revitalization Minister Ryosei Akazawa will visit the U.S. for further trade talks. Automakers rallied after the Financial Times reported that Trump may exclude auto parts from a proposed 25% tariff. Toyota surged over 5% on this news and its U.S. plant expansion plans, while Honda gained 2%. Nintendo also jumped more than 5%, boosted by strong demand for its upcoming Switch 2 console.
Elsewhere, Asian markets reflected Wall Street's overnight gains following Trump’s hints at reducing tariffs on China and softening criticism of the Federal Reserve. However, skepticism lingered as Trump emphasized that any progress would require initiative from Beijing, a move Chinese officials have yet to signal. U.S. futures inched higher in early Asian trading.
China’s CSI 300 and Shanghai Composite both rose 0.5%, while the Hang Seng dipped 0.4% amid profit-taking in internet stocks. Australia’s ASX 200 gained 0.6%, and Singapore’s Straits Times Index edged up 0.3%. Indian futures suggested a weak open, as investors monitored geopolitical tensions after a terrorist attack in Kashmir.
South Korea's KOSPI fell 0.6% following disappointing Q1 GDP data, which showed a 0.2% quarter-on-quarter contraction due to export disruptions from U.S. trade policies. This overshadowed strong earnings from chipmaker SK Hynix, whose shares slipped slightly despite continued AI-driven demand.


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