Markets rise as Japan-U.S. trade talks ease tariff concerns

Asian stocks rose Thursday, led by Tokyo, as optimism over Japan-U.S. trade talks helped offset concerns about President Donald Trump’s proposed tariffs and their potential economic impact.

The Nikkei 225 gained 1.4 percent to 34,377.60, with investors encouraged by early signs of progress in negotiations. Trump posted there had been “Big Progress!” while Japanese envoy Ryosei Akazawa said both sides aim to reach a deal within 90 days. Prime Minister Shigeru Ishiba noted talks “won’t be easy” but welcomed the president’s support.

The rally helped ease some market jitters following Federal Reserve Chair Jerome Powell’s warning that tariffs could force the Fed to choose between controlling inflation or unemployment. He also cautioned of continued volatility.

Other Asian markets rose, including Hong Kong (+1.6 percent), Shanghai (+0.1 percent), and Seoul. European markets opened lower.

Oil prices climbed as the U.S. imposed new sanctions on a Chinese refinery for buying Iranian crude. Meanwhile, the World Trade Organization warned of “severe” global consequences from the ongoing trade conflict.