Asian stocks moved higher on Monday, led by gains in technology shares as investors reacted positively to recent U.S.-China trade discussions.
Markets are now looking ahead to a summit between U.S. President Donald Trump and Chinese President Xi Jinping later this week.
Regional sentiment was also supported by gains in U.S. stock index futures during Asian trading hours.
Technology Shares Lead Asian Markets Higher
South Korea’s KOSPI rose around 1.7%, supported by strong gains in major technology stocks.
Samsung Electronics jumped about 4%, while SK Hynix edged 0.1% higher.
Chinese equities also advanced. The blue-chip CSI 300 gained roughly 0.5%, while the Shanghai Composite rose around 0.6%.
Hong Kong’s Hang Seng index added approximately 0.6%.
U.S.-China Trade Optimism Supports Chinese Stocks
Mainland Chinese markets benefited from improving sentiment around U.S.-China trade discussions.
However, investors remained cautious ahead of the upcoming meeting between Trump and Xi.
U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held talks in New York over the weekend. Both sides described the discussions in relatively positive terms.
The talks covered trade and artificial intelligence, with Washington and Beijing also agreeing to establish an AI dialogue ahead of the leaders’ meeting on Thursday.
Trump-Xi Summit Takes Center Stage
The upcoming Trump-Xi summit is expected to focus heavily on trade relations between the world’s two largest economies.
A possible extension of the current trade truce is likely to be a major topic.
Tariffs, rare-earth exports and restrictions on advanced technology are also expected to remain high on the agenda.
Any progress on these issues could influence sentiment across Asian stocks, technology shares and global financial markets.
Japan Closed as Regional Trading Volumes Thin
Japanese financial markets were closed for a public holiday, reducing overall trading volumes across the region.
Australia’s S&P/ASX 200 was little changed as weakness in energy and mining stocks offset gains elsewhere in the market.
Singapore’s Straits Times Index rose around 0.3%, while futures linked to India’s Nifty 50 also gained approximately 0.3%.
Falling Oil Prices Support Risk Sentiment
Oil prices declined for a fourth consecutive session, helping ease some pressure on Asian equity markets.
Brent crude traded near $103 a barrel as signs of increased Middle Eastern supply and stronger Saudi exports reduced some concerns over immediate shortages.
Lower oil prices can benefit many Asian economies by reducing import costs and easing inflationary pressure.
However, crude prices remained historically elevated as the ongoing conflict involving the United States and Iran continued to create geopolitical and inflation risks.
Treasury Yields Remain in Focus
Investors were also watching developments in the U.S. bond market.
Expectations of additional Federal Reserve interest-rate increases have kept upward pressure on Treasury yields.
Higher yields can weigh on growth and technology stocks by increasing borrowing costs and reducing the relative appeal of future corporate earnings.
For Asian markets, attention is now likely to remain focused on the Trump-Xi summit, developments in U.S.-China trade negotiations, oil prices and the outlook for Federal Reserve monetary policy.
