Global Markets Rally as Hopes for U.S.-China Trade Talks Offset Tech Sector Concerns

Global stock markets surged on Friday, buoyed by fresh signals that trade negotiations between the United States and China may soon resume — a development that eased fears of a prolonged trade war and boosted investor confidence.

The rally came despite disappointing earnings from tech giants Apple and Amazon, which had initially rattled markets.

Apple’s announcement that it would scale back its share buyback program and its warning that tariffs could cost the company nearly $900 million this quarter had raised concerns over the economic toll of ongoing trade tensions. However, a statement from China’s Commerce Ministry turned the tide.

According to Beijing, the U.S. has “repeatedly expressed” interest in re-engaging on tariffs, and China remains open to dialogue. The ministry’s comments were interpreted as a potential turning point in the trade dispute that has weighed heavily on markets in recent months.

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The positive sentiment sparked a turnaround in U.S. stock futures. The S&P 500 futures climbed 0.8%, while Nasdaq futures rose 0.6%. European markets followed suit, with Eurostoxx 50 futures jumping 1.3%, signaling a strong open.

In Asia, markets responded enthusiastically. The MSCI Asia-Pacific index (excluding Japan) surged to its highest level since late March, recovering losses sustained since the onset of U.S. tariffs in early April.

Japan’s Nikkei gained over 1%, Taiwan’s stock market jumped 2.4%, and Hong Kong’s Hang Seng index rose by 1.6%. Mainland Chinese markets remained closed due to a holiday.

“China has struck a cautious but encouraging tone, stressing that if the U.S. truly wants trade talks, they must show sincerity,” said Matt Simpson, senior market analyst at City Index.

Economic data released this week reflected the impact of trade tensions. The U.S. economy contracted for the first time in three years during the first quarter, while China’s manufacturing sector experienced its sharpest slowdown in 16 months — both signs that tariff pressures are beginning to weigh on growth.

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In the currency markets, the Japanese yen saw early weakness, hitting its lowest level since April 10, before stabilizing at 145.26 per U.S. dollar. The Bank of Japan, in response to the uncertain global outlook, kept interest rates unchanged and slashed its growth forecasts, suggesting a continued wait-and-see approach.

Commodities also reacted to the shifting trade landscape. Gold prices edged higher to $3,252.11 per ounce but remained on track for their weakest weekly performance since February. Oil prices, however, climbed steadily, supported by the possibility of increased demand if trade barriers are eased. Brent crude rose 0.66%, while U.S. West Texas Intermediate futures gained 0.7%.

Overall, the market’s rebound reflects growing optimism that a diplomatic breakthrough between Washington and Beijing could be on the horizon — a development that would be welcomed by investors and policymakers alike as they navigate an increasingly uncertain global economy.