Asian Markets Rally as US–China Trade Deal Optimism Builds
Asian stock markets surged on Monday after Donald Trump signalled that the US and China are on track to reach a trade agreement, boosting hopes that the current truce, due to expire on 1 November, will be extended.
US officials also indicated that Beijing may postpone export controls on rare earths, following trade discussions in Malaysia over the weekend. U.S. Treasury Secretary Scott Bessent said both sides had drawn up a “very substantial framework” for a deal.
Japan’s Nikkei led gains, jumping 2.5% to break 50,000 for the first time. South Korea’s Kospi rose 2.6% to a record high, while Hong Kong’s Hang Seng climbed 1%, and China’s Shanghai and Shenzhen indices advanced 1.2% and 1.5% respectively.
US stocks surged to new record highs on Friday after inflation data came in slightly softer than expected, boosting hopes that the Federal Reserve may soon cut interest rates.
The S&P 500 rose 0.8% to close at 6,791.69, surpassing its previous record set earlier this month. The Dow Jones Industrial Average gained 1% to 47,207.12, also a new all-time high.
The Nasdaq Composite climbed 1.1% to finish at a record 23,204.87, led by gains in major technology names.
Trump is expected to meet Xi Jinping later this week during his Asia tour.
