HONG KONG: Asian markets largely rose on Friday (May 2), tracking Wall Street gains, as China said it was considering a United States offer to negotiate steep tariffs.
US markets forged higher on Thursday following strong results from tech giants Microsoft and Meta that helped offset lingering economic worries.
Apple reported first-quarter profit above expectations but warned that US tariffs could cost the company and were disrupting its supply chain.
And Amazon reported a 9 per cent rise in first-quarter revenue, but its outlook fell as a potential impact from the US-China trade war rattled investors.
Washington’s punishing levies reached 145 per cent on many Chinese products in April, while Beijing has responded with fresh 125 per cent duties on imports from the US.
On Friday, China’s commerce ministry said it was evaluating a US offer for negotiations on tariffs, but wanted Washington to show “sincerity” and be ready to scrap levies that have roiled global markets and supply chains.
US President Donald Trump has repeatedly claimed that China has reached out for talks on the tariffs, and this week said he believed there was a “very good chance we’re going to make a deal”.
Dozens of countries face a 90-day deadline expiring in July to strike an agreement with Washington and avoid higher, country-specific rates.
Stephen Innes of SPI Asset Management said Beijing and Washington were now “waving detente flags” in their spiralling trade war.
Beijing’s demand for sincerity was an apparent call to ditch the 145 per cent rate, before holding serious talks, Innes said in a note Friday.
“But dig a layer deeper, and the path is still littered with landmines,” he added.
Source: CNA
