Asian markets saw significant gains, led by Chinese indices, following news of progress in U.S.-China trade talks, along with positive sentiment from a ceasefire agreement between India and Pakistan. U.S. futures also surged, reflecting optimism surrounding imminent tariff reductions.

Key Market Movements

• China: Shanghai Shenzhen CSI 300 increased by 1.1%, with the Shanghai Composite rising by 0.9%, while Hong Kong’s Hang Seng climbed 1.5%.

• Taiwan: TSMC (TW:2330/NYSE:TSM) stocks gained 1% after reporting record-high sales for April.

• India: The Nifty 50 futures surged on the back of the India-Pakistan ceasefire, setting up for a strong open.

• Other Regions: Japan’s Nikkei 225 rose by 0.1%, TOPIX remained stable, while Australia’s ASX 200 increased by 0.3%.

Drivers Behind the Rally

U.S.-China Trade Progress

U.S. and Chinese negotiators have come to an agreement on a crucial consensus to pause escalating tariffs and discuss ways to reduce America’s trade gap with China. U.S. futures rose sharply, particularly Nasdaq 100 futures (NQM25), which jumped nearly 2%, ahead of anticipated announcements confirming substantial tariff rollbacks.

Geopolitical Stability

The ceasefire between India and Pakistan eliminates a vital geopolitical concern for investors, underpinning gains in the Nifty 50 and generally elevating risk appetite across emerging markets.

Sector and Stock Highlights

• Pharmaceutical Sector: Stocks in this sector faced challenges following President Trump’s pledge to cut U.S. drug costs through executive action.

• Semiconductor Stocks: TSMC’s impressive sales figures bolstered confidence in the semiconductor sector, lifting related equities in Taiwan and abroad.

Data Insights for Investors

For information on which stocks and sectors are driving these momentum changes, investors can access the Market Biggest Gainers API for real-time data on top performers in Asia’s major exchanges.