Asian equities powered ahead on Monday, with key regional indexes rallying on signs of progress in trade talks between the US and China. The Times of India+2Reuters+2
Positive tone across the region
Markets in Japan and Korea led the charge, with the Nikkei 225 climbing around 2 % and Korea’s KOSPI also gaining more than 2 % as investors cheered a reported framework of an agreement between the United States and China. Reuters+1 The broader Asia-Pacific index reached a record peak on the day. Reuters
Drivers of the move
The main impetus was fresh signs that the global trade standoff may ease: top Chinese and U.S. officials reportedly crafted a deal framework that could lead to tariffs being paused and export controls relaxed. Reuters+1 In turn, safe-haven assets such as gold and long-dated bonds fell as risk appetite returned. Reuters
Watching ahead: risks and catalysts
While the mood is upbeat, the market remains cautious. Key upcoming events include central-bank meetings in Japan and the U.S., and major U.S. technology earnings that could reshape sentiment in the region. Reuters Moreover, markets will be sensitive to whether the trade pact framework holds up and whether stimulus in China starts to translate into actual growth.
Implications for investors
Asian equities may continue to benefit from the improving backdrop, particularly exporters and companies leveraged to global trade flows. That said, investors should stay alert to downside risks: a breakdown in the trade talks or weak macro data could quickly reverse gains. Monitoring central-bank commentary and earnings surprises will be key.
Newshub Editorial in Asia – 27 October 2025
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