Asian stocks experienced moderate gains on Thursday, driven by optimism surrounding the initial round of trade negotiations between the United States and Japan. The Nikkei 225 in Japan rose by 0.7%, reflecting positive sentiment after President Donald Trump announced 'big progress' in the talks aimed at avoiding higher tariffs. The yen weakened following comments from Japan's chief trade negotiator that currency issues were not discussed during the negotiations. Honda's stock price increased by 1.7% as the company announced plans to move production of the five-door Civic hybrid electric vehicles for the U.S. market to Indiana. The broader market sentiment was influenced by a mix of factors, including ongoing trade uncertainties and recent comments from Federal Reserve Chair Jerome Powell. Powell indicated a cautious approach to the impact of tariffs, which contributed to a two-day consolidation in stocks ending on Wednesday. This was exacerbated by the U.S. imposing restrictions on some chip exports by Nvidia Corp., while China expressed openness to trade talks with the U.S. Japan reported a $63 billion trade surplus with the U.S. amid these negotiations. Despite these developments, investors remain focused on the trajectory of U.S.-Japan trade talks, which are seen as a potential framework for how the U.S. might approach trade relationships with other allies. Preparations are underway for a second round of talks later this month, as both countries aim to reach a deal as soon as possible. In commodity markets, U.S. crude oil rose by 35 cents to $62.82 per barrel, and Brent crude increased by 23 cents to $66.08 per barrel. Gold hit a record high, while Treasury yields and a gauge of the dollar also saw slight increases. Meanwhile, the S&P 500 fell by 2.2%, the Dow Jones Industrial Average dropped 699 points, and the Nasdaq composite sank by 3.1%.