China Mulls Easing US Levies – Asia Market Wrap

Global stocks advanced for a fourth consecutive day – on track for the best winning streak in more than two months – as trade tensions cooled and after Federal Reserve officials indicated they would be open to cutting rates earlier than anticipated.

The MSCI Asia-Pacific Index extended its gains after Bloomberg News reported China’s government is considering suspending its 125% tariff on some US imports. Shares in South Korea rose 1% as Treasury Secretary Scott Bessent said the US may reach an “agreement of understanding” on trade as soon as next week. The Nikkei-225 climbed as much as 2% on positive comments from the US-Japan trade talks.

A gauge of the dollar advanced while Treasuries held gains from Thursday.

China is mulling suspending its tariffs on some US imports, people familiar with the matter said, as the economic costs of the tit-for-tat trade war weigh heavily on certain industries.

Authorities are considering removing the additional levies for medical equipment and some industrial chemicals like ethane, the people said, asking not to be identified discussing private deliberations.

On Thursday, Trump said his administration was talking with China on trade, while Beijing denied the existence of negotiations and demanded the US revoke all unilateral tariffs. Dozens of nations have appealed to Washington for relief from higher tariffs that have been suspended for 90 days to provide time for talks.