Asian stock markets posted modest gains on Friday, buoyed by renewed signs of diplomatic engagement between the United States and China, two economic superpowers whose trade rivalry has rattled global markets for years.

In a statement that shifted investor sentiment across the region, China’s Ministry of Commerce revealed that Washington had “repeatedly expressed willingness” to return to the negotiation table. Beijing, the ministry added, remained open to discussions — but on the condition that the U.S. shows “sincerity.”

The remarks were enough to reverse early losses in U.S. futures trading, even after major tech firms like Apple and Amazon posted disappointing earnings that highlighted the mounting cost of the ongoing trade standoff. Apple warned that tariffs could add nearly $900 million in additional costs this quarter alone.

Still, futures tied to the S&P 500 rose 0.6%, while the Nasdaq gained 0.3%. In Asia, Japan’s Nikkei index climbed 1%, helped by a weakening yen, while Taiwan’s stock market surged by 2%. The MSCI Asia-Pacific Index (excluding Japan) was up 0.4%.

“This wasn’t China blinking,” said Matt Simpson, senior analyst at City Index. “If anything, they’ve drawn a line — talks are possible, but not on Washington’s terms. Trump’s dream of a submissive Beijing isn’t playing out.”

Markets have grown weary of U.S. President Donald Trump’s unpredictable tariff threats, which continue to cast a long shadow over global trade and economic growth. This week’s data showed the U.S. economy contracted in the first quarter — its first retreat in three years — while Chinese factory activity dropped at its fastest pace in over a year.

Analysts warn that the worst may be yet to come.

Joseph Capurso of the Commonwealth Bank of Australia cautioned that the real bite of tariffs will be felt once consumer prices rise. “If inflation eats into household spending and companies start laying off workers or pulling back on investment, a recession could be triggered,” he noted. “It’s not our base case yet, but it’s going to be close.”

While Apple and Amazon disappointed, other tech giants offered some relief. Microsoft and Meta (formerly Facebook) reported stronger-than-expected earnings earlier in the week, suggesting that some in Silicon Valley are adapting better to shifting trade winds.

Still, investor nerves remain frayed. With trade policy changing faster than supply chains can adapt, many companies have scaled back profit forecasts or withdrawn them altogether.

On the currency front, Japan’s yen slid to its lowest level since early April, dragged down by the Bank of Japan’s decision to lower its growth outlook without adjusting interest rates. It was last trading at 145.62 per dollar. HSBC’s Fred Neumann noted that while the BOJ hasn’t ruled out a rate hike, “that door is barely open.”

The dollar, in contrast, is enjoying its strongest weekly performance since February. Ahead of key U.S. job data, the dollar index stood at 100.14. Analysts expect April to have added 130,000 jobs to the U.S. economy — down from March’s 228,000.

Meanwhile, Japanese officials hinted at leveraging their $1 trillion stake in U.S. Treasury assets during ongoing tariff talks in Washington — a signal that Tokyo is prepared to play hardball if necessary.

In the commodities space, oil prices rose after President Trump warned of secondary sanctions against Iran, reigniting geopolitical fears. Brent crude was up 0.56%, while West Texas Intermediate gained 0.6%.

Gold, however, slipped to $3,234.90 per ounce, headed for its worst weekly showing in two months as investor appetite for safe-haven assets faded.

WafricView:
As the world’s two largest economies edge toward dialogue — however tentative — Africa, as ever, watches with cautious interest. With supply chains shifting and capital flows reacting instantly to rhetoric from Washington and Beijing, the continent's markets remain vulnerable to volatility they did not cause — but will undoubtedly feel.


by Wafriknews Global business Desk.