Global equity markets rose on Monday after conciliatory remarks from US President Donald Trump helped ease tensions in the ongoing US-China trade dispute, while Japanese stocks hit a record high following news of a political breakthrough in Tokyo.
Investor sentiment improved after Trump told Fox News he would still meet Chinese President Xi Jinping at the upcoming APEC summit and described his proposed 100% tariffs on Chinese goods as “not sustainable.” The comments came shortly before Chinese state media reported that Vice Premier He Lifeng and US Treasury Secretary Scott Bessent had held “candid and constructive” talks, agreeing to resume negotiations soon.
The renewed optimism followed a week of volatility sparked by Trump’s tariff threats in response to China’s new rare earth export controls, which had fueled fears of a deeper trade confrontation.
Asian markets rallied broadly. Tokyo’s Nikkei 225 jumped 3.4% to close at a record 49,185.50 points after Japan’s ruling party announced plans to form a new coalition government, clearing the way for Sanae Takaichi to become the country’s first female prime minister. Hong Kong’s Hang Seng Index rose 2.3%, and Shanghai’s Composite gained 0.6% after China reported third-quarter growth in line with expectations, albeit the slowest in a year.
Other regional markets — including Sydney, Seoul, Taipei, Mumbai, and Bangkok — also advanced, with European indices in London, Paris, and Frankfurt opening higher.
Analyst Chris Weston of Pepperstone said, “Markets appear priced for a positive or at least less-bad outcome,” noting that investors expect China to ease rare-earth export restrictions, paving the way for the US to extend its current 30% tariff truce.
Oil prices, however, edged lower, with Brent crude down 0.9% at $60.77 per barrel, while the US dollar strengthened slightly against major currencies.
