Asia-Pacific stocks rise as Wall Street optimism and trade progress boost sentiment.

Asia-Pacific stocks rise as Wall Street optimism and trade progress boost sentiment.

Asia-Pacific stocks surged on July 23, 2025, as optimism from Wall Street and progress in trade negotiations boosted investor sentiment. The positive outlook was bolstered by a trade agreement between the United States and Japan, which reduced tariffs on Japanese imports to 15% and included a significant Japanese investment commitment of $550 billion into the U.S. [3].

The Nikkei 225 index in Japan surged 3.7% intraday, reaching a 12-month high at 41,255 points, while the Hang Seng Index in Hong Kong rose 1% to near a four-year high of 25,405, buoyed by speculation of an extension to the U.S.-China trade truce beyond the 12 August deadline [3].

Singapore's Straits Times Index extended its record run, rising 0.4% intraday to 4,226, while Australia's ASX 200 gained 0.7% to close at 8,737, driven by strength in energy and materials sectors [3].

U.S. stocks also advanced on Wednesday, with the Dow Jones Industrial Average rising 507.85 points, or 1.14%, to 45,010.29, the S&P 500 rising 49.35 points, or 0.78%, to 6,358.97, and the Nasdaq Composite rising 127.33 points, or 0.61%, to 21,020.02 [2].

Treasury yields reversed their three-day decline and rose, as risk-on sentiment grew, while gold prices softened. The yield on benchmark U.S. 10-year notes rose 5.2 basis points to 4.388%, and the 30-year bond yield rose 4.1 basis points to 4.944% [2].

The U.S. dollar eased as the yen gathered strength and the euro inched higher as trade negotiations progressed. The dollar index fell 0.27% to 97.20, with the euro up 0.18% at $1.1774 [2].

Oil prices dropped as trade uncertainties ebbed, with U.S. crude dipping 0.09% to $65.25 per barrel and Brent settling at $68.51 per barrel, down 0.12% on the day [2].

The trade agreement with Japan and progress in U.S.-EU trade negotiations have lifted investor sentiment, driving stock market gains across the globe. The second-quarter earnings season is underway, with 23% of the companies in the S&P 500 having reported, of which 85% have beaten Wall Street expectations [2].

References
[1] https://www.inkl.com/news/sap-earnings-revenue-edge-by-wall-street-targets-amid-cloud-shift
[2] https://www.reuters.com/business/autos-transportation/global-markets-update-8-graphics-2025-07-23/
[3] https://www.investing.com/analysis/asia-stocks-rally-on-usjapan-trade-deal-nikkei-hits-12month-high-wti-declines-200664168