Japan’s Nikkei 225 breached the 50,000 mark for the first time Monday as investors cheered progress in U.S.-China trade talks and strong momentum from Wall Street. The benchmark index rose over 2%, while the Topix added 1.61%.
Japanese Prime Minister Sanae Takaichi is expected to meet U.S. President Donald Trump this week during his visit to Japan.
“It is expected that the message she would convey is to significantly expand domestic demand through a high-pressure economy,” Crédit Agricole CIB said in a note on Monday.
A strong expansion of the country’s domestic demand would “completely lift Japan out of its deflationary structural stagnation” and make progress toward reducing the U.S. trade deficit, resulting in a win-win for both countries, the strategists said.
Across Asia, South Korea’s Kospi jumped 2.1% to cross 4,000 for the first time after hitting a record high on Friday, while the small-cap Kosdaq added 1.45%. Hong Kong’s Hang Seng Index rose 1.15%, while the mainland CSI 300 rose 0.83%.
K-pop entertainment agency Hybe climbed nearly 10% after Bloomberg reported that supergroup BTS was planning a world tour spanning 65 cities, with half in North America.
Australia’s ASX/S&P 200 was up 0.54% in early trade.
The regional rally followed reports that top U.S. and Chinese trade negotiators had hashed out a framework on several disputed issues, paving the way for Trump and Chinese President Xi Jinping to sign off on the terms.
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.
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 Lim Hui Jie, Sean Conlon and Pia Singh contributed to this report.
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