Asia-Pacific markets traded higher on Wednesday, following hopes of reduced trade tensions between the US and China. The positive mood was supported by remarks from US President Donald Trump, who said tariffs on Chinese goods would not reach 145%, although they won't be completely removed either.
Markets also found some relief after Trump stated he has "no intention" of replacing Federal Reserve Chair Jerome Powell. Economic data released during the day showed Japan's services sector expanded in April, while its factory downturn softened. In Australia, private sector growth moderated slightly.
Japan's Nikkei 225 traded 1.72% higher at 7:14 am CET. Hong Kong's Hang Seng surged 2.65% and South Korea's Kospi climbed 1.45%. In mainland China, the Shanghai Composite increased 0.11% while the Shenzhen Composite went 1.09% up at the same time. Australia's S&P/ASX 200 gained 1.49%. The dollar traded 0.18% higher against the yen at 7:14 am CET, selling for 141.8480.