Asia-Pacific Stocks Climb as Trade Optimism Lifts Investor Sentiment

Picture Credit: Pelago

Asia-Pacific markets traded mostly higher on Wednesday, bolstered by optimism surrounding new trade developments between the U.S. and Japan, as well as growing hopes for a potential agreement with the European Union. Investors welcomed these signs of international cooperation amid an otherwise cautious global economic backdrop.

Japan led the charge with a stellar performance. The Topix index surged 1.75% to an all-time high of 2,977.55, while the Nikkei 225 gained 1.59% to close at 41,826.34. Strong corporate earnings and signs of improved export prospects helped fuel the rally.

In South Korea, the Kospi edged up 0.21% to 3,190.45, continuing its recent positive momentum, although the tech-heavy Kosdaq slipped 0.45% to 809.89. Meanwhile, China’s CSI 300 index rose 0.71% to 4,149.04, as Beijing hinted at additional stimulus measures to support its struggling property sector and revive domestic consumption.

Australia’s market was mixed. The S&P/ASX 200 dipped 0.32% to 8,709.4, as mining stocks lagged on falling iron ore prices, while optimism around tech and banking helped cushion losses.

Elsewhere, India’s Nifty 50 gained 0.57% to close at 24,821.10, reflecting broader investor confidence in the country’s economic resilience, while Hong Kong’s Hang Seng Index slipped slightly by 0.15% to 25,524.45, weighed down by weakness in property shares.

The upbeat mood in the region mirrored gains in the U.S., where the S&P 500 closed at a record 6,358.91, up 0.78%. It was the benchmark’s 12th record close of the year, driven by strong corporate earnings and continued enthusiasm for AI-related stocks.

With improved trade signals and resilient corporate performance across several Asian economies, investors appear cautiously optimistic heading into the second half of the year. All eyes now turn to upcoming central bank meetings and inflation data, which will further shape market direction in the weeks ahead.