Asia Stocks Rise on Hopes of Russia-Ukraine Peace Deal
Most Asian stocks advanced on Monday as signs of progress in U.S.-Russia talks over a potential Ukraine ceasefire boosted risk appetite. Japanese shares hit record highs, while Chinese and Indian markets outperformed.
China and India Rally on Oil Trade Hopes
Chinese and Indian markets surged on optimism that a swift resolution to the Russia-Ukraine conflict could reduce U.S. pressure on their Russian oil imports.
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CSI 300 rose 1.5%, while the Shanghai Composite added 1.2%, reaching a nine-year high.
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India’s Nifty 50 jumped 1.5%, touching a three-week peak.
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Hong Kong’s Hang Seng lagged behind, rising only 0.6% as property and tech stocks slipped.
The gains came alongside a rise in U.S. futures, with the S&P 500 up 0.2% in regional trading. Markets also extended last week’s rally as investors increased bets on a September Fed rate cut.
Trump-Putin Talks and Market Sentiment
Investor sentiment was lifted after U.S. President Donald Trump met Russian President Vladimir Putin in Alaska on Friday. Trump described the meeting as positive, though details remained vague.
Trump will meet Ukrainian President Volodymyr Zelensky and European leaders later Monday. On Sunday, he suggested Ukraine could end the war by ceding Crimea to Russia and dropping its NATO bid—a proposal Kyiv has rejected.
Analysts say a peace deal could reduce U.S. scrutiny of China and India’s Russian oil imports. Still, Trump has threatened 50% tariffs on Indian exports over continued oil purchases, with duties set to take effect later in August.
Japan’s Nikkei Hits Record High
Japan’s Nikkei 225 and TOPIX rose 0.8% and 0.5%, both touching record highs.
Gains were fueled by:
- Strong Q2 GDP data showing Japan’s economy remained resilient despite tariff and inflation headwinds.
- Government pushback against U.S. claims that the Bank of Japan was “behind the curve” on raising interest rates.
- A weaker yen, which supported export-heavy sectors.
Other Asian Markets Lag Behind
Not all Asian markets shared the bullish tone:
- South Korea’s KOSPI fell 1.3% as tech stocks slid, catching up to losses in U.S. peers.
- Australia’s ASX 200 was flat, weighed by weakness in mining and energy shares.
- Singapore’s Straits Times dropped 0.6% after hitting record highs last week.
Oil and Energy Stocks Weaken
Oil stocks across Asia slid, tracking a drop in global oil prices. Traders bet that a potential Russia-Ukraine peace deal could increase global supply and pressure energy markets.
