Most Asian stocks rose sharply on Wednesday, tracking an overnight rally on Wall Street after U.S. President Donald Trump flagged an eventual lowering in steep trade tariffs against China. 

But mainland Chinese stocks were little enthused by his comments, and traded sideways on Wednesday. Hong Kong stocks, however, rallied with their Asian peers.

Regional markets took a positive lead-in from Wall Street after Trump’s comments. The President also downplayed his recent tirade against Federal Reserve Chair Jerome Powell, granting markets more relief.

U.S. stock index futures rose in Asian trade, with S&P 500 Futures rising 1.4%. 

Hong Kong, Japan, lead Asia stock gains on Trump comments  

Hong Kong’s Hang Seng index and Japan’s Nikkei 225 were among the top performers in Asia on Wednesday, rising between 1.7% and 2%. 

Japan’s TOPIX also added about 1.8%, while South Korea’s KOSPI rose 1.4%. Japanese shares rose past mixed purchasing managers index data, which showed strength in services and a prolonged decline in manufacturing in April. 

Asian technology shares were the best performers on Wednesday, benefiting greatly from bargain buying after suffering outsized losses in recent weeks. 

But other sectors also rose. Australia’s ASX 200 soared 1.6% on gains in mining and bank stocks, while Singapore’s Straits Times index added 0.7% on sustained gains in local financial stocks.

Futures for India’s Nifty 50 index pointed to a strong open. 

Asian markets surged as Trump said he wanted a deal with China where trade tariffs against the country will be well below current levels of 145%. This came after Treasury Secretary Scott Bessent reportedly said that the ongoing Sino-U.S. trade war was unsustainable, and that he expected a de-escalation soon.