Japan Nikkei 225 It surpassed the 50,000 mark for the first time on Monday as investors cheered progress in U.S.-China trade talks and strong momentum on Wall Street. The benchmark index rose more than 2%, while the Topix added 1.61%.
Japanese Prime Minister Sanae Takaichi is expected to meet with US President Donald Trump this week during his visit to Japan.
“The message she will convey is expected to be to significantly expand domestic demand through an economy under high pressure,” Crédit Agricole CIB said in a note on Monday.
A strong expansion of the country’s domestic demand would “fully lift Japan out of its deflationary structural stagnation” and move toward reducing the U.S. trade deficit, resulting in mutual benefit for both countries, the strategists said.
Across Asia, South Korea’s Kospi jumped 2.1% to cross 4,000 for the first time after hitting a record high on Friday, while the small-cap Kosdaq added 1.45%. from hong kong Hang Seng Index rose 1.15%, while the continental CSI 300 rose 0.83%.
K-pop entertainment agency Hybe rose nearly 10% after Bloomberg reported that supergroup BTS was planning a world tour spanning 65 cities, half of them in North America.
Australia’s ASX/S&P 200 rose 0.54% in early trading.
The regional rally came after reports that top U.S. and Chinese trade negotiators had hammered out a framework on several disputed issues, paving the way for Trump and Chinese President Xi Jinping to approve terms.
US Treasury Secretary Scott Bessent said in an interview with CBS News on Sunday that Trump’s proposed 100% tariffs on Chinese imports are “effectively off the table.” He added that China is expected to make major purchases of soybeans and delay broad restrictions on rare earth exports. The United States, however, will maintain its current export controls on China, Bessent noted.
Last Friday, all three major averages closed at a record, as cold inflation data spurred optimism among investors that the Federal Reserve can maintain its path of rate cuts, boosting the U.S. economy and justifying higher stock valuations.
The Dow Jones Industrial Average rose 472.51 points, or 1.01%, to 47,207.12, securing its first close above the 47,000 level. The S&P 500 added 0.79% to 6,791.69, while the Nasdaq Composite rose 1.15% to 23,204.87.
Investors are also awaiting a widely expected interest rate cut from the Federal Reserve and a series of earnings reports from big tech companies.
— CNBC’s Lim Hui Jie, Sean Conlon and Pia Singh contributed to this report.
