Catenaa, Wednesday, June 11, 2025- Asian shares rose on Wednesday after the US and China said they had reached an agreement on a framework for easing the trade tension between the two nations.
Japan’s benchmark Nikkei 225 surged 0.5% while data from the Bank of Japan showed wholesale inflation slowed in May, meaning there might be less pressure for the central bank to raise interest rates in its next policy board meeting.
Hong Kong’s Hang Seng gained almost 1% while the Shanghai Composite rose 0.6%, Australia’s S&P/ASX 200 edged up 0.1%, and South Korea’s Kospi added 0.9%.
On Tuesday, the US and China agreed to a preliminary plan to ease trade tensions, as negotiators from both sides said in London they agreed on a framework on how to implement the consensus the two sides reached in the prior round of talks in Geneva.
China’s Chief Trade Negotiator Li Chenggang said the US and Chinese delegations will now take the proposal back to their respective leaders.
U.S. Secretary of Commerce Howard Lutnick said Tuesday evening in London that talks with China were going “really, really well.” Both the United States and China have put many of their tariffs announced against each other on pause as talks continue.
Even though many tariffs are on hold for the moment, uncertainty over what is to come is still affecting companies and their ability to make profits.
The uncertainty is moving in both directions, to be sure. A survey released Tuesday of optimism among small US businesses improved a bit in May.
“While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth,” according to Bill Dunkelberg, Chief Economist at the National Federation of Independent Business.
