Most Asian stocks rose marginally on Thursday amid increased hopes for a deescalation in U.S. President Donald Trump’s tariff agenda ahead of trade talks between Washington and Beijing later this week. 

The U.S. dollar rose Thursday, retaining some strength after the Federal Reserve highlighted stagflation risks at its latest meeting, prompting traders to push out the chance of near-term rate cuts.

Thailand’s economy and exports will grow less than expected this year because of U.S. tariffs, a leading business group said on Wednesday, adding the country could lose market share in the United States if a tariff reduction was not secured.

Japan’s service sector activity returned to growth in April after stagnating the previous month, helped by improved orders, a stark contrast to continued weakness in manufacturing, a business survey showed on Wednesday.

The U.S. goods and services deficit widened in March following an uptick in imports as businesses raced to lock in prices before the implementation of elevated tariffs.

Most Asian stocks rose on Wednesday, with Chinese markets in the lead after the announcement of trade talks with the U.S. pushed up hopes for a deescalation in an ongoing trade war.