Asian Markets Pivot Amid U.S.-Japan Trade Talks and Rising Tariffs

Asian stocks showed marginal gains as U.S.-Japan trade discussions unfolded, amid enduring tariff concerns. Comments from Federal Reserve Chair Powell hinted at economic risks, boosting gold prices to record levels owing to safe-haven demand. Chip stocks suffered after warnings from Nvidia and ASML, while global investor sentiment remained cautious.

Asian equities made slight gains on Thursday, buoyed by U.S.-Japan trade negotiations, despite lingering tariff uncertainties under President Trump. Investors digested Federal Reserve Chair Jerome Powell's remarks on potential economic risks, driving gold prices to new highs amid a preference for safe-haven assets.

Technology shares commanded attention following downturns prompted by Nvidia and ASML's warnings, along with expected earnings from Taiwan's TSMC. The Nikkei increased by 0.7% as trade talks with the United States began, with President Trump declaring progress.

In the markets, sentiment is rebounding due to renewed trade discussions. South Korea's index rose while Taiwan's dropped, and European futures projected a muted opening. The Federal Reserve's cautious stance on interest rates highlights ongoing economic uncertainties.

(With inputs from agencies.)