Asia stocks rise as traders weigh China-US row, rate cut hopes

Asia stocks rise as traders weigh China-US row, rate cut hopes Estelle.Bronkhorst Thu, 10/16/2025 - 06:00 BEIJING - Asian equities edged up on Thursday as investors weighed the latest volleys in the China-US trade war and expectations that the Federal Reserve will continue cutting interest rates this year.Markets have been in flux this week since US President Donald Trump fanned the embers in his tariff row with Beijing on Friday, threatening 100 percent levies on Chinese goods in retaliation for its recent rare-earth export controls.While he tempered his rhetoric days later, the outburst has led to tit-for-tat measures and warnings, raising concerns about the months-long truce between the superpowers that has provided some much-needed calm on trading floors.Trump on Wednesday added to a sense of unease when he told reporters the countries were involved in a trade war. Well, you re in one now, he replied to a reporter who questioned whether they were on course for a sustained trade war if he did not reach an agreement with Chinese counterpart Xi Jinping. We have a 100 percent tariff. If we didn t have tariffs, we would be exposed as being a nothing, he added.His comments came as his Treasury Secretary Scott Bessent appeared to take a more conciliatory tone, by proposing a longer pause in their tariffs as they look to resolve the rare earths row.Since May, the two countries have suspended sky-high levies on each other for three months at a time as they work towards a full trade deal.After a broadly positive day on Wall Street, Asia rallied for a second successive day.Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Manila were all well up as traders focused on the likelihood of more Fed rate cuts.The central bank s closely watched Beige Book survey of US economic conditions pointed to a softer job market, echoing a string of recent weak data.That provided extra ammunition for those eager for more rate cuts, including Trump.The figures also come after Fed boss Jerome Powell this week warned that the downside risks to employment appear to have risen .Still, economists at Bank of America remain cautious.

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