Washington: Global markets showed signs of optimism following a shift in US President Donald Trump's tariff policy, which could help prevent a trade war.

According to Anadolu Agency, the US is actively engaging in tariff discussions with several countries, raising investors' hopes for peaceful trade resolutions. President Trump announced on Friday that the US is nearing a deal with Japan, as negotiations over US tariffs continue. This development comes as Japan's economy minister and chief negotiator, Ryosei Akazawa, prepares for a three-day visit to the US for further discussions.

Last week, during his visit to the White House, Akazawa encouraged the US to reconsider tariffs on Japanese exports, particularly those from Japan's significant automobile sector. Meanwhile, US Treasury Secretary Scott Bessent revealed that trade negotiations with South Korea might progress more quickly than anticipated.

"We had a very successful bilateral meeting with the Republic of South Korea today," Bessent stated at the White House. "We may be moving faster than I thought, and we will be talking technical terms as early as next week as we reach an agreement on understanding as soon as next week."

South Korean Finance Minister Choi Sang-mok headed to the US on Tuesday for the initial round of trade talks with US officials. These positive developments contributed to a decrease in the VIX, known as the "fear index," which measures market volatility. The index dropped to 29.70 points from its previous record high of 52.33 points on April 8.

On Friday, US stocks ended the day on a high note, buoyed by hopes of avoiding a trade war, with significant contributions from the "Magnificent Seven" big tech companies.