Asian equities advanced on Wednesday, led by Chinese markets, as optimism over a preliminary trade framework between the U.S. and China boosted sentiment across the region. Gains, however, were tempered by lingering uncertainties over tariff enforcement and the upcoming U.S. inflation data.

China Leads the Charge, But Investors Seek More Clarity

China's CSI 300 and Shanghai Composite climbed 1% and 0.7% respectively, while Hong Kong's Hang Seng rose 0.9%, extending Tuesday's momentum. The positive tone followed two days of high-level trade discussions in London, which yielded a draft framework to ease U.S.-China trade tensions.

U.S. officials indicated the framework could ease export curbs—particularly around rare earths—but stopped short of confirming policy reversals. The ambiguity capped broader gains, with many investors adopting a wait-and-see approach.

Tech Sector in Focus as Chipmakers Rally

Technology stocks outperformed across the region:

• South Korea's KOSPI surged 0.6% to an 11-month high, led by SK Hynix (up 3%), amid speculation that U.S. chip export restrictions to China may be rolled back.

• Japan's Nikkei 225 gained 0.4%, although the broader TOPIX index was flat due to mixed sentiment around Japan's inflation trajectory and monetary policy outlook.

The upward momentum in tech can be tracked using Technical Intraday (Williams), which reflects intraday momentum surges for high-volume stocks like SK Hynix and Tokyo Electron. Investors are also watching Technical Intraday (StdDev) for volatility shifts following trade and inflation-related news.

Other Notable Regional Moves

• Australia's ASX 200 rose 0.3%, with Johns Lyng Group Ltd soaring 20% after confirming a takeover offer.

• Singapore's Straits Times Index fell 0.4%, reflecting sectoral rotation away from banks toward cyclical plays.

• India's Gift Nifty Futures dipped 0.1%, signaling a tepid open following a flat Tuesday session.

Looking Ahead

While U.S.-China talks have set a cautiously optimistic tone, markets remain sensitive to any detailed disclosures. In the near term, focus will likely shift to the U.S. Consumer Price Index (CPI) data, which could influence the Federal Reserve's rate trajectory and ripple through emerging markets.