Markets Rally as Trump's Reversal Boosts Confidence

Stock markets in Asia rose after U.S. President Trump signaled no plans to fire Fed Chair Powell and suggested lower tariffs for China. This eased investor fears, leading to gains in the dollar and recovery in beaten-down stocks. Optimism also lifted Wall Street indices and boosted oil prices.

Asian stock markets experienced a boost on Wednesday following U.S. President Donald Trump's indication that he had no plans to dismiss Federal Reserve Chair Jerome Powell and hinted at potential tariff reductions for China. This signaled a momentary calm to investors and spurred a short rally in various markets.

The dollar strengthened sharply across global markets after Trump's comments, alleviating previous fears of instability regarding U.S. monetary policy. However, the gains began to temper as negotiations between the U.S. and China remained in early stages. Investor sentiment was cautiously optimistic as markets reacted positively to Trump's tone change.

Wall Street saw an extension of its gains with the S&P 500 and Nasdaq futures rising, bolstered by encouraging earnings reports including a notable recovery in Tesla stocks. Oil prices saw a slight rebound while safe-haven assets like gold faced profit-taking. The overall market mood pivoted towards a more positive outlook on possible de-escalation in trade tensions.

(With inputs from agencies.)