Asia report: Markets rise on US-China deal hopes
By Josh White
Date: Wednesday 11 Jun 2025
(Sharecast News) - Asia-Pacific markets advanced on Wednesday amid renewed optimism over US-China trade talks, as officials from both countries said a framework agreement had been reached and was awaiting approval from their respective leaders.
The talks, which continued in London for a second day, could still be extended further if necessary, according to US and Chinese representatives.
"After two days of back-and-forth in London, the US-China trade circus wrapped with what can only be described as a diplomatic tautology - a late-night announcement that both sides have 'agreed in principle on a framework to implement the Geneva consensus' - a consensus that was, ironically, already agreed upon weeks ago," said SPI Asset Management managing partner Stephen Innes.
"[US] commerce secretary Howard Lutnick and China's vice commerce minister Li Chenggang delivered the news just shy of midnight London time, sounding more like they were reading a corporate mission statement than breaking any new geopolitical ground.
"Lutnick's punchline? 'Once the presidents approve it, we will then seek to implement it'."
Innes quipped that 48 hours of talks produced a "reaffirmation to eventually do what they had already said they would do".
"If markets were expecting substance, they got process instead."
Markets rise on US-China trade deal positivity
In Japan, the Nikkei 225 rose 0.55% to close at 38,421.19, led by a 10.51% jump in Sumco, a 5.74% gain in Isetan Mitsukoshi Holdings, and a 4.8% rise in Tokyo Electron.
The broader Topix index edged up 0.09% to 2,788.72.
Mainland Chinese equities also gained, with the Shanghai Composite up 0.52% at 3,402.32 and the Shenzhen Component adding 0.83% to 10,246.02.
Notable movers included Shanghai Huili Building Materials, up 10.13%, Shanxi Huayang New Material, up 10.09%, and Lushang Property Co, up 10.06%.
In Hong Kong, the Hang Seng Index advanced 0.84% to 24,366.94, bolstered by a 4.61% rise in China Hongqiao Group, a 4.58% gain in China Life Insurance, and a 3.83% increase in electric vehicle maker BYD.
South Korea's Kospi 100 climbed 1.31% to 2,912.26.
Hanwha Solutions soared 22.99%, SK Square rose 7.12%, and Mirae Asset Daewoo Securities gained 6.99%.
Australia's S&P/ASX 200 inched up 0.06% to 8,592.10.
Zip Co led the gains in Sydney with a 15.45% rise, followed by Fletcher Building with a 10% gain, and Reece, up 5.87%.
New Zealand's S&P/NZX 50 index rose 0.33% to 12,605.93, supported by a 9.97% rise in Fletcher Building, a 3.56% gain in Serko, and a 2.84% lift in Tourism Holdings.
In currency markets, the dollar was last up 0.09% on the yen, changing hands at JPY 145.00, while it gained 0.13% against the Aussie to AUD 1.5353, and advanced 0.24% on the Kiwi, changing hands at NZD 1.6562.
Oil prices eased modestly, with Brent crude futures last down 0.27% on ICE at $66.69 per barrel, while the NYMEX quote for West Texas Intermediate fell 0.08% to $64.93.
Korean unemployment rate holds steady, as expected
In economic news, South Korea's unemployment rate held steady at 2.7% in May, matching market expectations and maintaining the same level for a second consecutive month.
While the labour market appeared stable on the surface, much of the improvement was apparently being driven by government-supported job programmes rather than private-sector hiring.
The labour force participation rate edged down slightly to 64.7%, and although conditions had improved since late 2024, analysts cautioned that the quality of employment remained a concern.
ING noted that the health and social work sectors had contributed most to job gains this year, but said the roles were predominantly low-skilled and low-paid, limiting their impact on consumer spending.
Private-sector hiring meanwhile continued to lag - manufacturers added 29,000 jobs in May following a 17,000 increase in April, despite headwinds from weakening exports.
However, the construction sector lost 7,000 jobs, while the services industry saw declines in hospitality and transportation employment, down by 26,000 and 14,000 jobs respectively.
The number of self-employed workers had also fallen for five consecutive months, reflecting pressure on small businesses from the broader economic slowdown.
With job growth concentrated in low-wage sectors, economists warned that a more robust recovery in consumption will require stronger hiring from the private sector.
"Labour market conditions are likely to remain healthy in the short term, keeping the unemployment rate low," analysts at ING noted.
"The new government is expected to support small-and-medium-sized enterprises and local economies through policy instruments.
"However, policymakers will need to work harder to address structural changes in the population and industry, such as chronically high unemployment among young people."
Reporting by Josh White for Sharecast.com.
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