Asian equity markets posted solid gains on Monday, buoyed by optimism that the United States and China have made progress in talks ahead of the highly anticipated meeting between President Donald Trump and Chinese President Xi Jinping in Washington later this week.
U.S. Treasury Secretary Scott Bessent told reporters after a meeting with Chinese Vice Premier He Lifeng in New York on Sunday that the United States had “a very successful engagement” with the Chinese side. He noted that the discussions touched on trade, artificial intelligence and broader geopolitical issues, setting a constructive tone for the upcoming summit.
Market reactions across the region
In the wake of Bessent’s comments, major Asian indexes rose. South Korea’s Kospi jumped 1.8% to 7,018.98, led by a 5% surge in Samsung Electronics and a 1% gain for memory‑chip maker SK Hynix. Taiwan’s Taiex advanced 1.1%, with its flagship AI chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) adding 0.6%.
Hong Kong’s Heng Seng index climbed 0.6% to 24,891.58, while the Shanghai Composite also rose 0.6% to 3,933.37. Japan’s Nikkei 225 was closed for a holiday, and Australia’s S&P/ASX 200 held steady at 8,730.40. India’s Sensex added 0.6%.
Key issues on the agenda
The upcoming Trump‑Xi meeting is expected to focus on reciprocal tariff reductions covering roughly $30 billion of goods from each side, as well as cooperation on artificial‑intelligence safety standards. Analysts also anticipate discussion of the war in Iran, broader Middle‑East stability, and the evolving relationship between China and Iran.
In the United States, investors are watching the bond market closely. The yield on the 10‑year Treasury hit 5% after the Federal Reserve raised rates for the first time in three years. The Bank of Japan also lifted rates to a 31‑year high, reflecting a global shift toward tighter monetary policy.
Energy and currency markets
Oil prices slipped early Monday as vessel traffic through the Strait of Hormuz increased, though the waterway remains largely closed and uncertainty over U.S.–Iran tensions persists. Brent crude fell 2.1% to $101.67 per barrel, while U.S. benchmark crude dropped 2.2% to $93.99.
The U.S. dollar edged higher to 157.02 Japanese yen, and the euro slipped to $1.1476.
U.S. equity outlook
Wall Street’s major indexes showed modest movement on Friday: the S&P 500 rose 0.2%, the Dow Jones Industrial Average edged down 0.2%, and the technology‑heavy Nasdaq gained 0.4%.
Overall, the combination of a positive diplomatic signal from Treasury Secretary Bessent and the prospect of constructive dialogue between President Trump and President Xi is encouraging investors that trade and technology tensions may be easing, at least in the short term.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
