Online Desk : Asian equity markets saw gains on Wednesday following announcements that the United States and China will hold high-level trade talks this weekend, raising hopes of easing tensions and reducing tariffs that have stoked fears of a global economic downturn.

The positive momentum was further supported by China’s latest monetary stimulus measures, including interest rate cuts and reduced reserve requirements for banks, aimed at reigniting lending and addressing its ongoing property crisis.

US Treasury Secretary Scott Bessent confirmed he and Trade Representative Jamieson Greer would meet Chinese Vice Premier He Lifeng in Switzerland. The talks mark the first official negotiations since President Donald Trump imposed sweeping tariffs on Chinese goods in early April. Bessent indicated the focus would be on de-escalation rather than securing a broad trade deal.

China’s commerce ministry responded with cautious optimism but warned against coercive tactics, stating it would “never agree” to negotiations that contradict US actions.

News of the talks buoyed markets across Asia, with gains recorded in Hong Kong, Shanghai, Singapore, Seoul, and others. However, Tokyo, London, and Paris saw modest losses, and Frankfurt ended flat, reports AFP.

Meanwhile, regional tensions weighed on Pakistan`s market, which fell over 6% following heavy border clashes with India. The Sensex in India remained flat amid the geopolitical uncertainty.

In commodities, oil prices climbed, with Brent crude up 1.5% to $63.06 and WTI rising 1.7% to $60.09.

Investors also await the US Federal Reserve’s rate decision later today, especially amid Trump’s pressure for further rate cuts in response to trade policy uncertainty.