HONG KONG - Stock markets extended the week's gains on optimism that other countries will follow up Japan's US trade deal with ones of their own, with speculation building that the European Union is on course.
Investors have been on a roll in recent weeks on bets that governments will eventually hammer out pacts with Donald Trump ahead of the US president's August 1 deadline.
The mood has been upbeat since news that Japan had reached a deal to lower sweeping tariffs from 25 percent to 15 percent, including those on the country's crucial car sector.
The breakthrough fanned hopes that others were in the pipeline.
However, there is talk that the European Union is edging towards an agreement. Reports say Brussels could get something similar to Japan, with tariffs cut to 15 percent -- from the threatened 30 percent.
The Financial Times said the two would waive tariffs on some products, including aircraft, spirits and medical devices.
That came after US Treasury Secretary Scott Bessent said negotiations were making progress, with talks planned later in the day between the bloc's top trade negotiator and his American counterpart.
Analysts said a deal with Washington's biggest trading entity would provide a massive boost to equities
However, failure to reach a deal, triggering Trump's 30 percent levies on August 1, could cause havoc on markets, analysts warned.
France has been loudest in insisting Brussels must show it is willing to deploy its trade weapon, known as the anti-coercion instrument -- allowing officials to take measures such as import and export restrictions on goods and services.
After another record day for the S&P 500 and Nasdaq on Wall Street, Asia picked up the baton and ran.
Tokyo piled on more than one percent, having jumped more than three percent Wednesday on the trade deal, while Hong Kong continued its standout year with another advance.
Shanghai, Seoul, Singapore, Wellington, Taipei and Jakarta also rose, with London, Paris and Frankfurt opening on the front foot.
There were some losses in Sydney, Mumbai and Bangkok.