Japan’s economy probably contracted for the first time in a year in the first quarter, weighed down by softer domestic demand and imports outperforming exports, a Reuters poll showed, as U.S. President Donald Trump’s trade policies dim the growth outlook.

Most Asian stock markets rose sharply on Friday, tracking overnight gains on Wall Street, with Hong Kong leading the rally after China said it was considering potential trade talks with the U.S.

Oil prices rose in Asian trade on Friday, recovering some recent losses after China said it was open to trade talks with the U.S., sparking hopes for a deescalation in a bitter trade war between the two economic powerhouses. 

The U.S. dollar ceded ground to the Swiss franc, Australian dollar, euro and yen on Friday as signs of a thaw in trade tensions lifted investors’ appetite for riskier assets while they awaited U.S. jobs data due later in the day. 

In March, before the U.S. imposed tariffs on most nations triggering a global trade war, euro zone consumers had increased their inflation expectations for the coming years, according to a European Central Bank survey.

Chinese President Xi Jinping used a visit to Shanghai on Tuesday to push for breakthroughs in artificial intelligence and underscore China’s leading role in the "Global South".