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Asian Stocks Surge on US-China Trade Optimism and Japan’s Political Shift

Asian Stocks Surge on US-China Trade Optimism and Japan’s Political Shift. Source: Image by Steinar Hovland from Pixabay

Asian markets extended their winning streak on Tuesday, buoyed by easing U.S.-China trade tensions and strong gains on Wall Street. Investor sentiment brightened after U.S. President Donald Trump expressed optimism about reaching a “very strong” and “fair” trade deal with Chinese President Xi Jinping at the upcoming APEC summit in South Korea. The remarks eased fears of a renewed trade war, fueling a rally across major Asian indexes.

China’s blue-chip CSI 300 climbed 1.3%, while the Shanghai Composite gained 0.8%, supported by renewed investor confidence. Hong Kong’s Hang Seng index jumped 1.8%, with tech heavyweights like Alibaba Group (HK:9988) leading the advance. In Australia, the S&P/ASX 200 rose 0.8% as mining shares hit record highs following a new U.S.-Australia critical minerals pact expected to unlock AU$8.5 billion in investments, reducing reliance on China. Singapore’s Straits Times Index also gained over 1%, and futures tied to India’s Nifty 50 were up 0.4%, signaling widespread regional optimism.

Japanese stocks continued their sharp rally as political developments boosted market sentiment. The Nikkei 225 rose 1.4%, building on Monday’s 3% surge, while the TOPIX index gained 0.8%. Investors cheered as Sanae Takaichi appeared set to become Japan’s first female prime minister following a ruling coalition agreement. Takaichi, known for her fiscally dovish stance, is expected to support further stimulus to sustain Japan’s fragile recovery.

In South Korea, the KOSPI index surged as much as 2.1% to a record 3,893.06 points, led by tech giants Samsung Electronics (KS:005930) and SK Hynix (KS:000660). Robust semiconductor earnings and strong global tech demand reinforced the bullish momentum across Asian markets, signaling broad-based confidence in the region’s growth outlook.

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