Asian stocks in green on hopes of easing US-China tensions

(Dan Tri) - Asian stock markets rose across the board on the morning of May 7 after the US and China planned to resume trade negotiations.

Opening the morning session on May 7, the Hong Kong (China) stock market led the increase in the Asia- Pacific region when it jumped more than 2%. Specifically, the Hang Seng index increased by 2.07%.

Elsewhere in the region, most markets also closed in the green, following reports that US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet with Chinese officials this week.

In Japan, the Nikkei 225 opened up 0.22%, the Topix up 0.38%; South Korea's Kospi rose 0.32%, although the Kosdaq fell 0.7%. Australia's S&P/ASX 200 edged up 0.17%, while mainland China's CSI 300 gained 1.01%.

Developments of stock indexes in Asia on the morning of May 7 (Source: CNBC).

The Indian stock market is expected to open on a cautious note on the morning of May 7, after the country's armed forces carried out precision air strikes targeting terrorist infrastructure in Pakistan and Pakistan-controlled Kashmir (PoK) under Operation Sindoor.

As of 8 a.m. (India time), Gift Nifty futures were trading at 24,356 points, indicating that the Nifty 50 index (.NSEI) is likely to open lower than Tuesday's close of 24,379.6 points, signaling a slightly red opening, reflecting cautious investor sentiment.

Although the government has insisted that the campaign is “focused, carefully considered and not aimed at escalating tensions,” early signals from the market show that investors remain cautious, concerned about potential risks ahead.

Bessent and Greer’s upcoming meeting with Chinese officials in Switzerland is expected to discuss economic and trade issues, opening the door to a possible de-escalation of the trade war that President Donald Trump has started. At the same time, the talks will result in easing tariffs with most other partners.

Meanwhile, in the US, stock futures rose overnight on May 6 as investors watched developments in trade negotiations and awaited the Federal Reserve's interest rate announcement due this afternoon (April 7). Dow Jones futures rose 280 points, or 0.7%; S&P 500 futures rose 0.8%; and Nasdaq 100 futures rose a strong 1%.

However, overnight trading on Wall Street recorded losses. The Dow Jones lost 389.83 points, or 0.95%, to 40,829.00; the S&P 500 fell 0.77% to 5,606.91; and the Nasdaq Composite fell 0.87% to 17,689.66. This was the second consecutive session of decline for all three major indexes.

On the Chinese side, Central Bank Governor Pan Gongsheng said at a press conference on Wednesday that the country will cut the 7-day reverse repo rate by 10 basis points, from 1.5% to 1.4%, leading to a reduction of about 10 basis points in the loan prime rate.

In addition, the reserve requirement ratio for banks will also be reduced by 50 basis points, helping to inject about 1,000 billion yuan (equivalent to 138.6 billion USD) of liquidity into the market.

Source: https://dantri.com.vn/kinh-doanh/chung-khoan-chau-a-phu-sac-xanh-nho-ky-vong-cang-thang-my-trung-ha-nhiet-20250507101026198.htm