Asian equities advanced on Monday as investors welcomed signs of easing tensions between the US and China following trade talks over the weekend.
A meeting in Geneva between officials from both countries led to commitments to continue negotiations.
China and Hong Kong stocks lead regional gains
China’s Shanghai Composite Index rose 0.82% to 3,369.24 after Vice Premier He Lifeng said both sides had agreed to establish a consultation mechanism to address ongoing trade and economic matters.
Hong Kong stocks outperformed, with the Hang Seng Index surging 3% and the Hang Seng Tech Index climbing 5.2%.
Alibaba led the rally with gains of more than 6%. Shares in BYD Electronic and Sunny Optical Technology each jumped over 13%, while Lenovo and XPeng rose more than 9%.
Both Hang Seng indices have now erased losses sustained since the steep “Liberation Day” tariffs were announced by President Donald Trump on April 2.
Indian equities rocket
Indian equity benchmarks surged sharply on Monday, driven by easing border tensions between India and Pakistan and notable progress in trade negotiations between the US and China.
The Sensex ended the session higher by 2,975.43 points, or 3.74%, at 82,429.90, while the Nifty rallied 916.70 points, or 3.82%, to close at 24,924.70.
In percentage terms, it marked the second-strongest single-day gain for both indices in four years, surpassed only by the rally on February 1, 2021, when benchmarks jumped more than 4.7%.
The rally was broad-based. All sectoral indices ended in positive territory, with notable strength seen in IT, financials, and consumer-facing sectors.
The BSE Midcap index rose 3.8%, while the Smallcap index outperformed with a 4% gain.
Top gainers on the Nifty included Infosys, Adani Enterprises, Shriram Finance, Trent, and HCL Technologies.
Japanese equities edge higher
Japanese markets registered modest gains on optimism around U.S.-China relations.
The Nikkei rose 0.38% to 37,644.26 and the Topix added 0.31% to 2,742.08. Gains in broader markets were tempered by corporate updates.
Panasonic Holdings fell nearly 2% after announcing plans to cut 10,000 jobs and take restructuring charges of ¥130 billion (about $896 million) this fiscal year.
Nippon Steel slumped 3.8% after projecting a 43% decline in net profit for the year ending March 2026.
Other regional markets
The Kospi in Seoul gained 1.17% to close at 2,607.33, supported by strength in technology and automobile shares.
SK Hynix, Hyundai Motor, Kia Corp, and Samsung Electronics all rose between 3% and 5%.
Australian stocks gave up early gains to end marginally higher. The S&P/ASX 200 edged up 0.07% to 8,197.60.
US markets on Friday
Wall Street closed out Friday on a quiet note, with major indices finishing narrowly mixed.
The Nasdaq edged up less than 0.1% to 17,928.92, while the S&P 500 dipped 0.1% to 5,659.91. The Dow lost 0.3% to close at 41,249.38.
For the week, the S&P 500 declined 0.5%, the Nasdaq lost 0.3%, and the Dow shed 0.2%.
Hopes for progress in US-China trade talks lifted early sentiment, with Bloomberg reporting that US officials aimed to reduce tariffs on Chinese imports to below 60%.
However, President Trump reiterated his preference for an 80% rate, capping enthusiasm.
The post Hang Seng, Nifty lead Asian markets higher on Monday appeared first on Invezz