Global Markets Rally on US-China Trade Hopes & Tech Earnings

Asian equity markets advanced Friday as optimism grew around a potential U.S.–China trade breakthrough, offsetting oil price pressures from fresh U.S. sanctions. The MSCI Asia-Pacific index rose ~0.4% while Japan’s Nikkei jumped ~1.4%. The rally was supported by stronger-than-expected earnings at U.S. tech heavyweight Intel Corporation and remarks that President Donald Trump will meet Chinese President Xi Jinping next week ahead of a major tariff deadline. 

With the U.S. government shutdown delaying key economic releases, focus shifts to upcoming inflation data and policy signals from the Federal Reserve. The U.S. dollar edged higher, while gold paused after a nine-week winning streak. 

Why it matters:

• A thaw in trade tensions could boost global growth and risk assets.

• The U.S. economic data gap due to the shutdown raises uncertainty over Fed policy.

• Equity rallies suggest investors are rotating into growth/tech on improved sentiment.

What to watch:

• Confirmation of Trump-Xi meeting details and legacy of any trade concession.

• U.S. inflation (CPI) and next week’s data calendar for clues on Fed direction.

• How risk assets like tech stocks, gold and FX adjust to shifting macro and trade dynamics.