Stocks across Asia surged on Monday as investors’ sentiments were boosted by signs of easing tensions between the United States and China after a weekend of high-level trade talks.Benchmark indexes in Japan and South Korea edged higher in early morning trading, while US futures pointed to a strong start on Wall Street, with the S&P 500 expected to open more than 1% higher.The Shanghai Index was trading at 3,359.52, up 17.52 points or 0.52%. Japan’s Nikkei rose 16.47 points or 0.04% to 37,519.8, while Hong Kong’s Hang Seng Index gained 203.88 points or 0.89% to reach 23,071.62, at 8.41 am.The boost came after meetings between US and Chinese officials in Geneva concluded on Sunday with what both sides described as meaningful progress. US treasury secretary Scott Bessent said “substantial progress” had been made, while China’s vice premier He Lifeng described the talks as “candid, in-depth and constructive.” Further details are expected to be released later on Monday.These were the first formal talks between Washington and Beijing since US President Donald Trump hiked tariffs on Chinese imports to a punishing 145%, prompting China to retaliate with its own steep duties of 125% on American goods, effectively halting much of the trade between the two economic giants.The deepening trade war has rattled global financial markets and raised the risk of a worldwide economic slowdown. Investors are now hopeful that the recent talks could be the first step towards rolling back some of the tariffs.Analysts at Wedbush Securities called the meeting “a positive step in the right direction,” adding that the agreement expected to be unveiled this week would likely feature “a much lower level” of tariffs at minimum.China reported last week that its exports to the US plunged 21% in April compared to a year ago, and early signs of a possible recession are starting to emerge in the United States.Although few expected any major breakthrough over the weekend, recent comments from Trump and other US officials have suggested that tariffs could come down significantly. The President last week floated a possible reduction to 80%, while Commerce Secretary Howard Lutnick said reciprocal tariffs might eventually settle around 34%.Markets will be keeping a close eye on the details of the agreement, but for now, the Geneva deal has sparked optimism.
