Asian markets opened the week on an upward trend as investors weighed expectations of a delayed decision on U.S.-China tariffs and key economic data that could influence global monetary policy. Major indices in Hong Kong, Shanghai, and Sydney edged higher Monday, while attention centered on Tuesday’s deadline for Washington to extend a 90-day trade truce with Beijing. Analysts widely anticipate an announcement from former U.S. President Donald Trump prolonging the pause in tariff escalations first agreed upon last month.
The week’s economic calendar remained crowded, with U.S. consumer price index figures due Tuesday expected to inform the Federal Reserve’s approach to interest rates. Market participants have increasingly bet on a September rate cut following signals of cooling economic activity, including softer employment data. Pressure on the central bank has intensified amid public calls from Trump for reduced borrowing costs to stimulate growth.
Geopolitical developments added further complexity, with a scheduled meeting between Trump and Russian President Vladimir Putin in Alaska on Friday. Observers suggest the talks could address potential sanctions relief for Moscow in exchange for progress toward resolving the Ukraine conflict, though details remain speculative.
Regional markets reflected cautious optimism, with Hong Kong’s Hang Seng rising 0.2% and Shanghai’s Composite gaining 0.3%. Sydney, Seoul, and Jakarta also saw modest gains, while Singapore and Manila dipped marginally. Japanese markets remained closed for a public holiday. Currency markets showed minimal volatility, while oil prices retreated slightly after recent gains.
Chris Weston, head of research at Pepperstone Group, noted markets have largely priced in another tariff truce extension. “Unless negotiations collapse entirely, an announcement confirming the rollover shouldn’t trigger significant movements,” he said. This sentiment followed gold’s slight retreat after reaching record highs Friday, driven by sudden tariffs imposed on precious metals trade.
Technology sectors drew particular interest as U.S. semiconductor firms Nvidia and AMD reportedly agreed to allocate 15% of their China-focused AI chip revenues to Washington under new trade terms. The development underscores intensifying competition in artificial intelligence between the U.S. and China, with investors continuing to back the sector’s transformative potential. Nvidia recently became the first company to achieve a $4 trillion market valuation, reflecting booming demand for AI infrastructure.
Commodity markets saw West Texas Intermediate crude drop 0.6% to $63.50 per barrel, while Brent crude fell 0.5% to $66.27. In U.S. markets, the Dow Jones Industrial Average closed Friday up 0.5%, contrasting with London’s FTSE 100’s marginal 0.1% decline. Analysts cautioned that Tuesday’s inflation figures and tariff decisions could recalibrate market trajectories, particularly for export-driven Asian economies closely tied to U.S. consumer demand and trade policies.
