Asia Markets Rise as Wall Street Gains from Trade Deal Hopes

Asian markets saw solid gains on Friday, buoyed by a continued rally in Wall Street stocks, which ultimately rose for the third consecutive day. Tech sectors, in particular, showed promising upticks, signaling optimism among investors amidst shifts in trade sentiment between the U.S. and China. The Hang Seng Index in Hong Kong rose by 1.36%, while Japan's Nikkei 225 surged by 1.88%. Reports from Bloomberg hinted that China might consider lifting its hefty 125% tariffs on select U.S. products, a move that could signal easing trade tensions. South Korea, too, is reportedly inching towards a trade agreement with the U.S., aiming for resolution by July to avoid impending tariffs. Economists share mixed sentiments; while some, like Louis Navellier, express growing comfort in the market outlook with potential tariff reductions, UBS's Sean Simonds warns of a looming recessionary environment that could impact consumer discretionary stocks heavily. Additionally, the International Monetary Fund's adjustment of Asia's growth forecast to 3.9% by 2025 indicates the ongoing uncertainty tied to trade policies may keep markets volatile. Consequently, while immediate gains are evident, underlying tensions present risks to sustained growth in the region's economic backdrop.