Global Markets Rally on US-China Tariff Talks

Global stock markets rallied as optimism grew that renewed US-China trade talks could ease damaging tariffs, following China's announcement that it is evaluating Washington's offer and demanding sincerity and removal of unilateral tariffs. Asian equities, particularly in Hong Kong and Taiwan, led gains, and the MSCI emerging markets index hit a multi-week high, as investors reacted to new US tariffs of 145% and China's 125% countermeasures. US and European indices also advanced, supported by strong corporate earnings and expectations that the Federal Reserve may accelerate interest rate cuts in response to economic risks from the trade dispute. Despite the positive sentiment, analysts cautioned that significant hurdles remain before any agreement can be reached. The upbeat mood extended to various regional stock indices, but some emerging market currencies, including Turkey's lira, continued to face pressure amid local issues. Market volatility remains high as investors monitor developments and upcoming US jobs data for further guidance.