Asian equity markets opened in positive territory on Wednesday morning, with Shanghai’s benchmark index leading regional gains whilst investors monitored ongoing trade developments between China and the United States following their recent tariff truce extension.
Asian equities edged higher in relatively muted trade after China and the US agreed to extend their tariff truce, providing support for sentiment across the region. China’s main stock market index, the Shanghai Composite, rose to 3,625 points on July 30, 2025, gaining 0.42% from the previous session, marking another positive session for Chinese equities.
Regional performance overview The Shanghai Stock Exchange, which opens at GMT +8 from 1.30am to 7am (GMT), set the tone for regional trading with its steady gains. Over the past month, the Shanghai index has climbed 4.83% and is up 23.35% compared to the same time last year, reflecting the continued recovery in Chinese markets.
Currency markets also showed strength, with the South Korean won leading gains in Asian currencies as regional sentiment remained cautiously optimistic. The positive opening follows relatively subdued trading volumes across the region, suggesting investors are taking a measured approach to market developments.
Trade developments impact The extended tariff truce between the world’s two largest economies continues to provide a supportive backdrop for Asian markets, particularly those with significant exposure to China-US trade flows. This development has helped stabilise investor sentiment after weeks of uncertainty surrounding potential escalation in trade tensions.
Market participants are closely monitoring developments in Beijing and Washington for any signs of further progress in trade negotiations. The current truce has provided breathing room for both economies and has been reflected in improved market performance across the Asia-Pacific region.
Looking ahead, Trading volumes remain relatively light across Asian markets, typical for the summer trading period. However, the positive momentum in Shanghai and broader regional stability suggest investors are becoming more confident about the near-term outlook for Asian equities.
The performance of major indices will depend heavily on continued diplomatic progress between China and the United States, as well as domestic economic indicators from key regional economies including Japan, South Korea, and Australia.
REFH – Newshub, 30 July 2025
Recent Comments