(fxcue news) - Asian stocks advanced on Wednesday after confirmation that trade talks between the U.S. and China would take place in Switzerland this week, the first formal talks between the countries since U.S. President Donald Trump declared sweeping tariffs last month. Sentiment was also bolstered after chipmaker Advanced Micro Devices reported strong financial results for the first quarter of 2025 and China reduced its policy rate to boost the economy. Treasuries dropped and the dollar snapped three days of declines before a Federal Reserve meeting later in the day to determine policy amid rising economic uncertainty. Oil extended gains after rallying more than 3 percent in the previous session. China's Shanghai Composite index rose 0.80 percent to 3,342.66 as the country's central bank and financial regulators announced sweeping plans to cut key interest rates to support the economy, soften tariff impacts and stabilize markets. Hong Kong's Hang Seng index edged up by 0.13 percent to 22,691.88 on optimism surrounding upcoming U.S.-China trade talks, with U.S. Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng expected to lead their respective negotiations teams. Japanese markets ended slightly lower as traders returned to their desks after a two-day holiday. The Nikkei average slid 0.14 percent to 36,779.66, snapping a seven-day winning streak. The broader Topix index settled 0.31 percent higher at 2,696.16. Automakers slumped on a stronger yen, with Honda, Toyota, Mitsubishi Motors and Nissan falling 2-3 percent. Pharma stocks also suffered heavy losses following Trump's threat of new pharmaceutical tariffs. Seoul stocks ended higher for a second day running, with the Kospi average rising 0.55 percent to 2,573.80 as trading resumed after a long holiday weekend. Local financial markets were closed on Monday and Tuesday for the Children's Day and Buddha's Birthday holidays. Australian markets eked out modest gains, with energy stocks pacing the gainers as oil prices recovered from recent lows. Mining and bank stocks also witnessed broad-based buying. NAB climbed 1.6 percent after its first-half earnings beat expectations. Buy now pay later lender Zip Co soared 13 percent after reporting solid Q3 results and lifting its full-year cash earnings guidance. The benchmark S&P/ASX 200 rose 0.33 percent to 8,178.30 while the broader All Ordinaries index closed up 0.36 percent at 8,399.80. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index climbed 0.61 percent to 12,496.89. U.S. stocks fell for a second straight session overnight as President Donald Trump's tariff threats on entertainment and pharma sectors along with uncertain remarks on global trade agreements dampened hopes for progress on tariff resolutions. Trump downplayed trade negotiations, saying he would prescribe tariff levels and trade concessions for partners looking to avoid higher duties. During a White House meeting with Canadian Prime Minister Mark Carney, Trump expressed frustration with the media's repeated questions about when the U.S. will sign new trade deals. "Everyone says, 'When, when, when are you going to sign deals?'" "We don't have to sign deals, they have to sign deals with us. They want a piece of our market. We don't want a piece of their market." "I wish they'd ... stop asking how many deals are you signing this week?" "Because one day we'll come and we'll give you 100 deals." Meanwhile, data showed U.S. trade deficit widened to a record high in March, raising concerns about Trump's tariff strategy. The Dow gave up 1 percent, the tech-heavy Nasdaq Composite shed 0.9 percent and the S&P 500 declined 0.8 percent.