Asia-Pacific markets traded higher Monday, led by South Korea, after top U.S. and Chinese trade negotiators hashed out a framework on several disputed issues, paving the way for U.S. President Donald Trump and Chinese President Xi Jinping to sign off on the terms.
South Korea’s Kospi jumped 1.83% after hitting a record high on Friday, while the small-cap Kosdaq added 0.72%. Japan’s benchmark Nikkei 225 rose 1.16%, while the Topix added 1.07%.
U.S. Treasury Secretary Scott Bessent said in an interview with CBS News Sunday that Trump’s proposed 100% tariffs on Chinese imports are “effectively off the table.” He added that China is expected to make significant soybean purchases and to delay broad restrictions on rare earth exports. The U.S., however, will maintain its current export controls on China, Bessent noted.
Futures of Hong Kong’s Hang Seng Index pointed to a stronger open, trading at 26,256 against the index’s previous close of 26,160.15.
Australia’s ASX/S&P 200 was trading 0.54% higher on open.
Last Friday, all three major averages closed at records as cool inflation data spurred optimism among investors that the Federal Reserve can stay on its rate-cutting path, boosting the U.S. economy and justifying higher valuations for equities.
The Dow Jones Industrial Average rose 472.51 points, or 1.01%, to 47,207.12, securing its first close above the 47,000 level ever. The S&P 500 added 0.79% to 6,791.69, while the Nasdaq Composite climbed 1.15% to 23,204.87.
Investors are also looking ahead to a widely expected interest rate cut by the Federal Reserve and a raft of Big Tech earnings reports.
— CNBC’s Sean Conlon and Pia Singh contributed to this report.