Asian Stocks Rise as US-China Extend Tariff Truce; Focus Turns to Fed, Tech Earnings – Asia Market Wrap

Asian equities edged higher in relatively muted trade after China and the US agreed to extend their tariff truce. The South Korean won led gains in Asian currencies.

The MSCI regional stock gauge rose 0.4%, led by technology shares.The dollar fell against all its Group-of-10 peers, with the Federal Reserve widely expected to leave interest rates unchanged Wednesday. The won rose as much as 0.8% after a report the US demanded gains in the currency during trade talks.

President Donald Trump is set to make the final call on maintaining the tariff truce with China before it expires in two weeks, an extension that would mark a continued stabilization in ties between the world’s two biggest economies. Shares in Shanghai rose 0.5% while those in Hong Kong declined 0.4%.

Much like the muted response to the US-EU tariff deal, the latest signs of progress with Beijing produced only a modest gain in stocks and did little to buoy investor sentiment. Traders are also focused on several key catalysts on the horizon, such as the Fed decision and Friday’s US jobs report. Adding to the busy calendar, four tech giants are set to report earnings over a two-day stretch.

The Stockholm negotiations marked the third round of US-China trade talks in less than three months. They wrapped up ahead of an Aug. 12 deadline to resolve differences during a 90-day suspension of tariffs that had threatened to cut off bilateral trade between the two nations.