Asian stock markets surged Monday as investors welcomed a breakthrough in China-US trade relations, with regional indices posting robust gains following a landmark agreement to reduce tariffs and establish a new economic dialogue framework.
Hong Kong's Hang Seng Index led the rally, jumping 2.98% on renewed optimism about cross-Pacific cooperation. The Shanghai Composite Index rose 0.82%, while Japan's Nikkei 225 advanced 0.38%, and South Korea's KOSPI gained 1.17%. Analysts attributed the rally to easing trade tensions and signals of stronger bilateral collaboration.
The gains followed a two-day high-level meeting between Chinese and US officials, during which both sides acknowledged their economic partnership's global significance. A joint statement emphasized commitments to a 'sustainable, long-term, and mutually beneficial' trade relationship, including temporary tariff adjustments and enhanced communication channels.
'This agreement demonstrates pragmatic cooperation between the world's two largest economies,' said a Hong Kong-based market strategist. 'Investors are betting on reduced supply chain disruptions and more stable growth across Asia.'
The development could signal a turning point for businesses and investors navigating geopolitical uncertainties, particularly in tech, manufacturing, and green energy sectors tied to both markets.
