Asian stock markets rose sharply in broad-based buying on Monday, lifted by expectations of a U.S. Federal Reserve interest rate cut later this week and signs of easing trade tensions between Washington and Beijing.
Regional markets also drew support from a record-high finish on Wall Street last week. U.S. stock futures also climbed in Asian trading hours as of 02:53 GMT.
Fed likely to cut rates; US-China trade truce progresses Markets are largely factoring in a 25-basis-point rate reduction by the Fed at the end of its two-day meeting on Wednesday, after U.S. inflation data for September came in softer than expected.
Traders have largely priced in the move and are now looking to the Fed for guidance on the timing and size of further cuts.
Risk sentiment was further buoyed after U.S. and Chinese negotiators in Kuala Lumpur reached a preliminary trade framework over the weekend, setting the stage for a decision by Presidents Donald Trump and Xi Jinping at a summit later this week in South Korea.
U.S. Treasury Secretary Scott Bessent said both sides had agreed to defer fresh tariff threats and pause China’s planned restrictions on rare earth exports.
“I think we’re going to have a deal with China,” Trump told reporters on Sunday.
China’s blue chip Shanghai Shenzhen CSI 300 rose 0.7%, while the Shanghai Composite climbed 0.8%.
Hong Kong’s Hang Seng index advanced 1%, with Hang Seng TECH sub-index jumping 1.2%. Japan, S.Korea shares surge to fresh peaks Japan’s Nikkei extended its record rally, jumping more than 2% to surpass the 50,000-point mark for the first time. It rose to as high as 50,491.23 points.
Japan’s broader TOPIX index also jumped to an all-time high, advancing 1.7% to 3,328.3 points.
Investors have been optimistic that new Prime Minister Senae Takaichi, viewed as fiscally dovish, would push for additional stimulus measures to sustain Japan’s fragile recovery.
Media reports showed last week that her government is preparing a fiscal package expected to focus on inflation relief.
In South Korea, the benchmark KOSPI also hit a fresh record high, jumping 2.3% to 4,038.39 points.
The rally was supported by robust gains in chipmaking giants Samsung Electronics (KS:005930) and SK Hynix Inc (KS:000660).
Elsewhere, Australia’s S&P/ASX 200 and Singapore’s Straits Times Index gained 0.4% each.
Futures for India’s Nifty 50 ticked higher before market open.
