Asia-Pacific markets rallied on Monday, with Japan’s Nikkei 225 and South Korea’s Kospi 200 both surging to record highs as optimism surrounding United States-China trade negotiations lifted investor sentiment across the region.
U.S. and Chinese trade negotiators reportedly reached a preliminary framework on several key disputes, which investors hope could pave the way for a formal agreement between U.S. President Donald Trump and Chinese President Xi Jinping.
By 11:40 am AEDT (12:40 am GMT), Japans' Nikkei 225 added 2.2% to a fresh record, Australia’s S&P/ASX 200 rose 0.7%, and the Kospi 200 index was up 2.3%, also reaching a fresh record.
On Wall Street, major benchmarks notched fresh all-time highs on Friday, as the Dow Jones Industrial Average added 1%, the S&P 500 rose 0.8%, and the Nasdaq gained 1.2%.
U.S. Treasury Secretary Scott Bessent told CBS News that President Trump’s previously proposed 100% tariffs on Chinese imports were now “effectively off the table”.
He added that China was expected to make substantial purchases of U.S. soybeans and delay restrictions on rare earth exports, though the U.S. would maintain its current export controls.
In commodities, Brent crude slipped 0.4% to settle at US$65.69 per barrel, while spot gold extended its recent decline from record highs, falling 0.3% to US$4,114.13 per ounce.
In China, the Shanghai Composite advanced 0.7% on Friday to a decade-high of 3,950.3, while the CSI 300 climbed 1.2% to 4,660.7.
Hong Kong’s Hang Seng index rose 0.7% to 26,160.2, and India’s BSE Sensex slipped 0.4% to 84,211.9.
European markets ended last week mostly higher, with the UK’s FTSE 100 gaining 0.7% to a record 9,645.6. Germany’s DAX edged up 0.1% to 24,239.9, and France’s CAC 40 was little changed at 8,225.6.
