Asian stocks today: Markets rally on US-China trade deal progress; Nikkei jumps 2%, Hang Seng up 1%

Stock markets in Asia jumped on Monday after the United States and China outlined a framework for a potential trade deal, raising hopes that tensions between the world’s two largest economies may ease. The development boosted investor confidence across regional markets, which opened higher following a strong finish on Wall Street last week.In early trade, Japan’s Nikkei 225 rose 2.1% to 50,321.49, while South Korea’s Kospi gained about 2%. Hong Kong’s Hang Seng Index climbed 1% to 26,425.51 and Shanghai’s Composite Index advanced 0.9% to 3,985.83. Taipei also opened higher, supported by improved global sentiment.Markets rallied after US Treasury Secretary Scott Bessent said the risk of a 100% US tariff on Chinese goods was “effectively off the table” following weekend talks in Malaysia, as reported by AFP. He added that China had agreed to delay its rare earth export controls and make “substantial” soybean purchases, a key move seen as progress toward a broader trade agreement.Chinese Vice Premier He Lifeng confirmed that both sides had reached a “preliminary consensus” on tariffs, export controls and fentanyl cooperation. He described the talks as “candid, in-depth and constructive.”The breakthrough paves the way for US President Donald Trump and Chinese President Xi Jinping to meet later this week in South Korea, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. It will be their first face-to-face meeting since Trump returned to office.Trump said he was confident that both countries could reach a comprehensive deal soon. “They want to make a deal and we want to make a deal,” he told reporters in Kuala Lumpur.The US president is currently on a five-day Asia tour. His visit included Asean summit in Malaysia. He is enroute to Japan and South Korea, with trade cooperation at the top of the agenda.Futures for US copper also rose on the trade optimism, signaling stronger expectations for global demand. Analysts said the progress helped ease fears of slower growth that had weighed on markets earlier this month.At the same time, oil prices edged higher, with Brent crude up 0.2% at $66.09 a barrel and US West Texas Intermediate at $61.62. Analysts suggested that the rise reflected improving investor sentiment and hopes of sustained economic recovery.Global markets followed the upbeat trend, the Dow Jones Industrial Average closed 1% higher at 47,207.12 on Friday, while London’s FTSE 100 gained 0.7% to 9,645.62.