Trade Talks Lift Market Spirits Amid Tariff Tensions

Asian stock markets and U.S. futures rose on signs of potential trade talks between the U.S. and China, countering worry over tariffs. The dialogue offers hope despite issues in the tech sector and economic strains due to tariff impacts. Investors are keen on U.S-China negotiation developments.

Asian stock markets and U.S. futures experienced an uptick on Friday, buoyed by the prospect of renewed trade talks between the United States and China. This development comes amidst concerns over tariffs and follows lacklustre tech industry earnings from giants like Apple and Amazon.

The Chinese commerce ministry signalled that the U.S. has reiterated its willingness to engage in tariff negotiations, stating China's door remains open for dialogue. This announcement helped reverse earlier declines in U.S. stock futures, which turned positive even as Apple adjusted its share buyback plan due to potential tariff costs.

While investor sentiment improved on the potential for talks, economic challenges persist. Issues like the U.S. economy shrinking in the first quarter and China's rapidly contracting factory activity weigh heavily. Analysts suggest a recession could loom if consumer price rises lead to reduced spending and cutbacks in business investments.

(With inputs from agencies.)