Nvidia faces restrictions on exports to China but negotiations could reduce fears over sector-specific levies on imported semiconductors.

Asian stock markets were broadly higher early Thursday, extending gains for a second session as the Trump administration softened its tone on the Federal Reserve and trade tensions with China.

U.S. stocks rebounded on Tuesday as a spate of quarterly earnings reports and hints at the de-escalation of U.S.-China trade tensions brought buyers in from the sidelines. U.S. stocks jumped further in extended trade after President Donald Trump said he has no plans to fire Federal Reserve Chair Jerome Powell,

Japan had long maintained deep economic ties with both China and the United States. Recent trade tensions may challenge that approach.

President Donald Trump had expressed optimism about a future deal with China and said tariffs would eventually come down.