Asia stocks: China climbs on US trade talk hopes; Fed meeting eyed

Investing.com-- Most Asian stock markets rose on Tuesday, led by Chinese shares, as optimism over potential U.S.-China trade talks boosted sentiment, while investors also digested fresh services activity data from the world’s second-largest economy.

Major regional markets, including Japan and South Korea, remained shut for holidays, leading to thin trading volumes in the region.

U.S. stock index futures ticked lower in Asian trading on Tuesday as investors cautiously awaited the crucial Federal Reserve policy meeting, starting later in the global day.

China shares gain on hopes of US trade talks

China’s Shanghai Composite index rose 0.8%, while the Shanghai Shenzhen CSI 300 jumped 0.9%.

Hong Kong’s Hang Seng index added 0.5%.

U.S. Treasury Secretary Scott Bessent told CNBC on Monday that he expects to see progress in U.S.-China trade talks in the coming weeks.

A day earlier, Trump said the U.S. was holding trade talks with several countries, including China, aiming to secure a fair deal with Beijing.

This comes after China’s statement last week that it was evaluating the possibility of trade talks with the U.S., saying that any dialogue must be based on sincerity and the removal of unilateral tariffs.

Chinese investors returned from a holiday, trying to play catch-up around positive signals on trade talks.

In other news, data on Friday showed that China’s services sector grew at a slower-than-expected pace in April. 

Investors now await the country’s trade balance and consumer price index inflation data, scheduled for release on Friday.

Australia, Singapore muted ahead of Fed meeting

Both Australia’s S&P/ASX 200, and Singapore’s Straits Times Index were largely muted as investors were cautious ahead of the U.S. Fed policy meeting, starting on May 6.

The central bank is expected to hold interest rates steady on Wednesday as policymakers have indicated a wait-and-see approach amid tariff concerns. 

Focus will be on comments from Fed Chair Jerome Powell for insights into the Fed’s future rate path.

Elsewhere, Indonesia’s Jakarta Stock Exchange Composite Index rose 0.7%, while the Philippines’ PSEi Composite gained 0.4%, 

India’s Nifty 50 Futures inched down 0.1% amid escalating geopolitical tensions with neighboring Pakistan.