Market commentary : Asian markets close the day in green

Asian markets have ended the day in green today, 11^th June, 2025. Nikkei 225 ended the day, up by 209.68 points or 0.55%. It pared some of the gains of the early morning, probably due to profit booking. Hang Seng ended the day, up by 204.07 points or 0.84%. Shanghai Composite ended the day, up by 17.50 points or 0.52%.

Asian markets gained sharply at the start of day today

Almost all the Asian markets gained sharply at the start of the day today. This, because of the news that US and China have agreed to a trade framework in their ongoing negotiations in London. This trade framework will maintain the truce agreed between the two countries in their previous round of negotiations in May. China also agreed to relax its restrictions on exports of rare earth materials to USA. USA agreed to relax its restrictions on export of AI chips and other technology products to China.

The trade framework that has been agreed between US and China will now go to the US and Chinese Presidents for their approval. United States is a big market of exports for Asian countries such as China and Japan. If higher tariffs imposed by President Trump continue, it will hurt them economically. So the course of Asian markets over the next few days or months will be mainly determined by the how the trade relations with US eventually unravel. Each country is trying to negotiate bilateral trade deals with USA in order to lower the tariffs imposed on its goods.

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Source: Nikkei