Post by : Badri Ariffin

Asian stock markets opened the week on a high note Monday, fueled by optimism that Washington and Beijing are moving closer to easing their long-standing trade rift. Investors cheered reports that top Chinese and U.S. officials have sketched out a potential trade framework, setting the stage for President Donald Trump and President Xi Jinping to finalize the deal later this week in South Korea.

The news sparked broad market gains across Asia. Hong Kong’s Hang Seng and Tokyo’s Nikkei both climbed sharply, while China’s blue-chip CSI 300 index rose as investor sentiment turned upbeat. The broader MSCI Asia-Pacific index also recorded its strongest opening in weeks, driven by renewed risk appetite and relief that further escalation may be avoided.

At the same time, the U.S. dollar drifted lower as traders shifted toward equities, while safe-haven assets like gold eased slightly. The potential trade breakthrough promises to halt upcoming American tariff hikes and pause China’s restrictions on rare earth exports — two major flashpoints that have rattled global markets in recent months.

Market analysts said the prospect of a truce between the world’s two largest economies comes at a crucial moment, with major central bank meetings and tech earnings set to dominate headlines this week. The combination of easing geopolitical risk and strong corporate momentum could inject fresh energy into global markets, at least in the short term.

While details of the draft deal remain under wraps, investors appear ready to bet on stability returning to trade relations after years of uncertainty. For now, Asia’s trading floors are seeing the early signs of renewed confidence — a welcome change from months of volatility.

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