Asian markets rebounded after U.S. President Donald Trump made conciliatory comments over the weekend, easing concerns about China‑U.S. trade tensions. The remarks helped lift market sentiment, and Tokyo stocks surged to a record high following news of a deal that would end political turmoil in Japan. Investors were further encouraged by data showing that China’s economy grew more than expected in the third quarter, despite registering its slowest pace in a year. This growth, combined with a positive mood on Wall Street—where all three major indexes recovered from Thursday’s losses—boosted confidence across the region.
Last week, trade tensions between the United States and China had escalated, with President Trump threatening 100 percent tariffs on Chinese goods in response to Beijing’s controls on rare‑earth exports. Over the weekend, however, both sides agreed to hold additional trade talks. Chinese state media reported that Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent engaged in “candid, in‑depth and constructive exchanges” during a call. The softer tone lifted markets throughout Asia: Hong Kong’s Hang Seng Index rose more than 2 percent, Shanghai’s Composite Index also gained, and Seoul, Wellington, Taipei, and Manila posted significant rallies.
Chris Weston, an analyst at Pepperstone, noted that “markets appear priced for a positive or at least less‑bad outcome” following President Trump’s remarks. In Japan, the Nikkei 225 jumped nearly 3 percent to a new peak after the ruling party announced plans to sign a new coalition deal, paving the way for Sanae Takaichi to become the country’s first female prime minister. The agreement alleviated worries about political instability that had weighed on the market last week.
The recovery in U.S. regional bank stocks on Friday also contributed to the upbeat sentiment, as investors grew less fearful of systemic problems. Gains in banks such as Salt Lake City‑based Zions Bancorp and Phoenix‑based Western Alliance Bancorporation suggested renewed confidence in the banking sector.
Key figures around 02:30 GMT showed the Tokyo Nikkei 225 up 2.9 percent at 48,970.40, the Hong Kong Hang Seng up 2.2 percent to 25,797.98, and the Shanghai Composite rising 0.6 percent to 3,860.79. The euro/dollar exchange rate slipped to $1.1665 from $1.1670.
The easing of trade tensions between the United States and China carries significant implications for global markets. With both countries agreeing to hold more trade talks, investors will watch developments closely in the coming weeks, hopeful that a resolution to the dispute could further boost market confidence and support economic growth.
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