Following two days of discussions in Switzerland, "substantial progress" in US-China trade relations is anticipated to improve sentiment in Asia, according to certain strategists, while others awaited more information. Despite neither party immediately announcing concrete measures on Sunday, Chinese Vice Premier He Lifeng stated that the world's two largest economies have decided to establish a mechanism for further talks. US Treasury Secretary Scott Bessent stated that the US would share details on Monday.

Tim Waterer, chief market analyst at KCM Trade in Sydney, believes that lower tariff levels between the US and China would significantly alleviate concerns about global growth in the second half of the year. He noted that US futures are rising in response to the trade meeting, and Asian markets are expected to trade positively. Waterer anticipates that the headlines from the Switzerland meeting will boost Asian stocks, with the goal of normalizing trade relations between the US and China.

According to Waterer, the US has promoted the idea that a deal has been reached with China, which should reduce market anxiety over tariffs. While specifics are scarce, the key point for risk assets is that progress has been achieved and that the world's two largest economies may soon lower tariff rates on each other.

Kazuhiko Sano, chief fixed income strategist at Tokai Tokyo Securities, believes that risk-on sentiment is likely to gain traction following self-congratulatory statements regarding 'significant progress,' despite the ambiguity of the U.S.-China trade talks.

Billy Leung, senior investment strategist at Global X ETFs, stated that the outcome is still fluid, with the US expected to release full details the following day. Most market signals point to a positive outcome, with equity futures and the US dollar trading higher. The main figure to watch is a possible reduction in US-imposed tariffs to 80% (down from 145%). With Chinese and US equities already up about 14% since the lows of April 7, the bar is arguably high.

Leung believes that anything below 80% should be regarded as a pleasant surprise, with 50–60% levels expected to be bullish. In that case, trade and export-sensitive industries like apparel would benefit, as would broader growth-related exposures.

Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, stated that it is unclear what is involved, therefore it is necessary to wait and see what happens.

Sean Callow, a senior analyst at InTouch Capital Markets in Sydney, believes that FX traders would want to hear more than boilerplate phrases about progress, given the starting point is a virtual trade embargo.

Shoki Omori, chief desk strategist at Mizuho Securities Co. in Tokyo, noted that the lack of definite outcomes following extended weekend deliberations has reduced market exuberance, making it difficult for investors to adopt a totally optimistic stance. Foreign exchange markets, according to Omori, appear ready for continued turbulence. Overall, the U.S. dollar is still favored, putting the USD/JPY pair on track for further gains. However, the impending release of U.S. Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales data may temper the pair's recent gains, raising the possibility of a "shock" correction.

Nick Twidale, chief analyst at AT Global Markets Australia, believes the situation is extremely positive for risk. Confirmation of facts will be required in the next several sessions, but the fact that both sides claim the talks are going well can only be seen as a positive thing. However, as with everything in this environment, caution is warranted, and traders will be ready to hit the sell button if the US administration changes its mind.

Win Thin, global head of markets strategy at Brown Brothers Harriman & Co. in New York, remains dubious that anything substantial could be agreed upon after only two days of discussions, but it is evident that both sides are seeking to de-escalate the situation. He believes the dollar rally could be sustained in the near term, but details of the agreement will be revealed later. Any letdown would reverse these changes.

In Yinchuan, China, on January 2, 2025, a 4.9-magnitude earthquake struck Ningxia, causing the house to shake violently. This footage was filmed by Mr. Zhang, in Yongning, Yinchuan, Ningxia, on January 2, 2025.