Asian stocks traded in a tight range and the yen weakened after US-Japan trade talks advanced, as investors adopt a wait-and-see approach to see how other tariff negotiations unfold.

Japanese shares gained slightly after President Donald Trump said negotiators made "big progress" in talks to strike a deal to avoid higher levies. The yen weakened after the country's chief trade negotiator said currencies weren't discussed. Gold advanced to a record while Treasury yields and a gauge of the dollar inched up.

The progress in discussions with Japan, "while preliminary, offer a small positive signal for markets," said Rajeev De Mello, a global macro portfolio manager at Gama Asset Management. "The trajectory of US-Japan trade talks will continue to be closely monitored, not just for their bilateral implications, but also as a potential framework for how the US may approach trade relationships with other allies."

Moves in Asia came after a nascent calm across global markets was shattered by Federal Reserve Chair Jerome Powell, who signaled a wait-and-see approach to tariffs and and pushed back on hopes he would act quickly to soothe investor fears. A two-day consolidation in stocks ended Wednesday after the US ratcheted up trade tensions by putting restrictions on some chip exports by Nvidia Corp. while China indicated it's open for talks with the US.

Asked at the Economic Club of Chicago if he envisioned a "Fed put" in which the central bank intervened to calm markets, Powell said "no," adding that too many questions exist about the impact of Trump's policies. "We don't know that yet, and until we know that we can't make informed decisions." For now, the US labor market is "in a really good place," with supply and demand falling in tandem, Powell said.

Source: Bloomberg