Asian stock markets moved higher following two days of trade talks between the US and China, which US Treasury Secretary Scott Bessent described as having made “substantial progress.”
After the negotiations concluded over the weekend in Geneva, a joint statement from both sides is expected later on Monday.
Investors also monitored geopolitical hotspots, including the India-Pakistan border, the war in Ukraine, and unrest in the Middle East.
India’s Sensex surged 2.5% after New Delhi and Islamabad agreed to a ceasefire following talks aimed at easing their worst military standoff in decades. The conflict had involved cross-border exchanges of gunfire, missile strikes, and drone attacks, resulting in numerous casualties.
In Hong Kong, the Hang Seng rose 1.3% to 23,172.87, while the Shanghai Composite Index added 0.6% to 3,362.77.
Chinese electric vehicle battery giant CATL (Contemporary Amperex Technology Co) announced plans to raise nearly $4 billion (£3 billion) through a share offering on the Hong Kong Stock Exchange.
Japan’s Nikkei 225 edged up 0.4% to 37,659.05, South Korea’s Kospi climbed 0.6% to 2,593.55, Australia’s S&P/ASX 200 added 0.1% to 8,237.80, and Taiwan’s Taiex advanced 1% to 21,129.54.
Stocks climb after US announces China trade breakthrough
Asian markets rose overnight after the White House confirmed a trade agreement had been reached with China following two days of talks in Geneva.
Hong Kong’s Hang Seng gained 1.2%, while Shanghai’s CSI 300 rose 0.8%, buoyed by optimism after US Treasury Secretary Scott Bessent said the negotiations had made “substantial progress.”
US stocks also looked set for a strong start, with Wall Street futures pointing to gains of over 1%.
However, broader Asian markets remained subdued as investors awaited full details of the deal, which are expected to be released later today.
Meanwhile, oil prices inched higher and the US dollar strengthened against major currencies.
