Asian stocks end mostly higher: CSI 300 up 0.6%, Hang Seng extends winning streak

Asian stocks advanced on Wednesday as confirmation of the first formal US-China trade talks in over a month lifted investor sentiment.

The upcoming meeting, to be held in Switzerland, offered a fresh catalyst after weeks of tariff-related tensions, though gains across regional markets remained uneven.

Japanese stocks slip

Japanese equities lagged behind the broader regional trend as traders returned from a two-day holiday.

The Nikkei 225 slipped 0.14 percent to 36,779.66, ending a seven-session winning streak, while the Topix index rose 0.31 percent to 2,696.16.

Export-oriented auto stocks came under pressure due to a firmer yen, with Honda, Toyota, Mitsubishi Motors, and Nissan each falling between 2–3 percent.

Pharma shares also saw declines after US President Donald Trump threatened new tariffs targeting the pharmaceutical sector, adding to sector-specific volatility.

Hong Kong and China gain ahead of Geneva talks

Hong Kong’s Hang Seng Index rose 0.1 percent to 22,691.88, marking its fifth straight day of gains, while the Hang Seng Tech Index shed 0.8 percent, reversing earlier intraday advances.

Chinese stocks closed higher, with the CSI 300 Index up 0.6 percent and the Shanghai Composite Index advancing 0.8 percent.

The advance followed announcements from both governments confirming that Chinese Vice-Premier He Lifeng will meet US Treasury Secretary Scott Bessent in Geneva from May 9 to 12.

The meeting will be the first official engagement since the implementation of sweeping US tariffs announced last month.

Indian markets resilient even as geopolitical tensions rise

Indian equities ended largely flat on May 7 amid heightened geopolitical tensions and investor caution ahead of the US Federal Reserve's policy announcement.

Sentiment turned cautious after India carried out a pre-emptive cross-border strike, though the response was seen as measured.

Globally, investors remained focused on upcoming remarks from Fed Chair Jerome Powell, particularly on tariffs and inflation, which could influence risk appetite.

The Sensex closed 105.71 points, or 0.13%, higher at 80,746.78, while the Nifty rose 34.80 points, or 0.14%, to settle at 24,414.40.

Among the top gainers on the Nifty were Tata Motors, Bajaj Finance, Jio Financial, Shriram Finance, and Eternal. On the losing side were Asian Paints, Sun Pharma, Bajaj Auto, Grasim Industries, and Reliance Industries.

Other regional markets

In South Korea, the Kospi Index rose 0.55 percent to 2,573.80, extending gains for a second consecutive session as trading resumed after a holiday.

In Australia, equities edged higher, led by energy and mining names on the back of a rebound in oil prices.

The S&P/ASX 200 added 0.33 percent to 8,178.30, while the All Ordinaries rose 0.36 percent to 8,399.80.

Wall Street on Tuesday

US stocks closed lower overnight as caution set in ahead of the Federal Reserve’s latest policy announcement due Wednesday.

The Dow fell 389.83 points, or 1.0 percent, to 40,829.00, the Nasdaq dropped 0.9 percent to 17,689.66, and the S&P 500 declined 0.8 percent to 5,606.91.

Markets continued to retreat from recent highs, with the S&P 500 giving back some gains after a nine-session winning streak.

While the CME FedWatch Tool shows a 96.8 percent probability that rates will be held steady, investors are awaiting signals on the central bank’s future stance amid persistent economic uncertainty.