Asia-Pacific stock markets began the trading week with a mixed and cautious performance on Monday, as investors eagerly awaited the outcome of crucial trade talks between the United States and China, which are set to kick off in Stockholm later in the day.
This high-stakes diplomatic engagement, coupled with a recent trade agreement between the US and the European Union, is setting a complex and somewhat uncertain tone for the region, with Indian benchmarks like the Sensex poised for a muted start.
The primary focus for investors today is the resumption of trade talks between Washington and Beijing, aimed at resolving long-standing economic disputes.
The talks will be led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. In a positive signal for the negotiations, Bessent told Fox Business that he expects a trade-truce extension to be discussed.
He also indicated that the negotiations will cover a broader range of topics than previous rounds, including sensitive issues such as Beijing’s oil purchases from Russia and Iran.
This meeting follows a significant development on the transatlantic trade front.
US President Donald Trump announced on Sunday US time that he had reached an agreement with the European Union, a move that averted his previous threat of imposing 30% tariffs on the bloc.
This successful negotiation with the EU has raised hopes for a similar outcome with China, though the issues at stake are arguably more complex.
A mixed picture across Asian bourses
The market’s reaction to this diplomatic flurry was varied across the region. As of 8:10 a.m. Singapore time, Japan’s Nikkei 225 benchmark fell 0.85%, while the broader Topix index moved down 0.44%.
In contrast, South Korea’s Kospi index added 0.15%, while the small-cap Kosdaq was flat. Over in Australia, the S&P/ASX 200 benchmark added 0.2%.
In Greater China, Hong Kong stocks started the day higher, with the Hang Seng Index adding 0.49% as of 10 a.m. local time. However, mainland China’s CSI 300 traded flat as investors awaited more details on the US-China talks.
Samsung surges on massive semiconductor deal
In corporate news, a standout performer was Samsung Electronics. Shares of the South Korean tech giant rose by as much as 3.49% on Monday following its announcement of a massive $16.5 billion contract for supplying semiconductors.
The memory chipmaker did not, however, name the counterparty in its announcement.
Indian markets poised for a tepid start
Indian stock market benchmark indices, the Sensex and Nifty 50, are likely to see a muted opening on Monday, tracking the mixed cues from other global markets.
The trends on Gift Nifty also indicated a tepid start for the Indian benchmark index, with Gift Nifty trading around the 24,832 level, a discount of nearly 18 points from Nifty futures’ previous close.
This follows a session on Friday where the Indian stock market ended with sharp losses, with the benchmark Nifty 50 closing below the 24,900 level.
The Sensex had crashed 721.08 points, or 0.88%, to close at 81,463.09, while the Nifty 50 settled 225.10 points, or 0.90%, lower at 24,837.00.
US markets: futures Rise on EU deal news
US equity futures rose in early Asian hours after President Trump lowered the threatened tariffs on the European Union to 15% from the previously stated 30%.
As of 8:03 a.m. Singapore time, S&P 500 futures had added 0.39%, while Nasdaq 100 futures were 0.53% higher. Futures for the Dow Jones Industrial Average increased by 156 points, or 0.35%.
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