Japanese Nikkei Stock Average The index breached 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. Benchmark indexes rose more than 2%, with TOPIX gaining 1.61%.
Prime Minister Sanae Takaichi is scheduled to meet with US President Donald Trump, who is visiting Japan this week.
“Her message is expected to be to significantly expand domestic demand through a high-pressure economy,” Credit Agricole CIB said in a note on Monday.
The strategists said strong growth in Japan’s domestic demand would “bring Japan out of deflationary stagnation once and for all” and move toward reducing the U.S. trade deficit, resulting in a win-win for both countries.
Across Asia, South Korea’s Kospi rose 2.1% to exceed 4,000 for the first time after hitting a record high on Friday, while the small-cap Kosdaq also rose 1.45%. hong kong Hang Seng Index rose 1.15%, and the mainland’s CSI300 rose 0.83%.
Australia’s ASX/S&P 200 index rose 0.54% in early trade.
The regional gathering followed reports that top U.S. and Chinese trade negotiators had worked out a framework on several disputed issues, paving the way for President Trump and Chinese President Xi Jinping to agree on terms.
US Treasury Secretary Scott Bessent said in an interview with CBS News on Sunday that President Trump’s proposed 100% tariffs on Chinese imports are “effectively off the table.” He added that China is expected to make significant purchases of soybeans and delay broader restrictions on rare earth exports. However, Bessent noted that the United States will maintain current export controls on China.
Last Friday, all three major averages closed at record levels. That’s as cool inflation numbers gave investors optimism that the Federal Reserve could keep interest rates on track, boosting the U.S. economy and justifying higher stock valuations.
The Dow Jones Industrial Average rose 472.51 points (1.01%) to 47,207.12, securing a closing price above the $47,000 level for the first time in history. The S&P 500 rose 0.79% to 6,791.69 and the Nasdaq Composite rose 1.15% to 23,204.87.
Investors are also keeping an eye on a widely expected rate cut by the Federal Reserve and a slew of earnings reports from Big Tech companies.
—CNBC’s Sean Conlon and Pia Singh contributed to this report.
