Asian stocks traded mixed in Wednesday’s trade (May 7, 2025) as the US and China are heading for formal trade talks this week, raising hopes of de-escalating the ongoing trade war. The key MSCI Asia ex Japan index traded with gains of 0.28 per cent.

Chinese markets led the gains after the central bank slashed the key policy rate to support the economy, while at the same time lowering the amount of cash banks were required to keep in reserve.

Meanwhile, Hong Kong’s Hang Seng was up 1.1 per cent, while South Korea’s Kospi also traded higher by 0.33 per cent.