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.

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