Asian stocks rise after Bessent calls China talks ‘very successful’

Asian stock markets mostly advanced Monday morning after U.S. Treasury Secretary Scott Bessent described weekend talks with Chinese Vice Premier He Lifeng in New York as "a very successful engagement," lifting investor sentiment ahead of a planned summit between President Donald Trump and Chinese President Xi Jinping in Washington on Thursday.finance.yahoo+1

Weekend Talks Set the Stage

Bessent and He Lifeng met Sunday for roughly eight hours of discussions covering trade, tariffs, rare earth supply and artificial intelligence. The two sides proposed the establishment of a "US-China AI Dialogue" channel to address technology risks, according to Bessent's remarks to reporters afterward. Chinese state media described the talks as "candid, in-depth and constructive". The countries have been discussing reciprocal tariff reductions on $30 billion worth of goods from each side, according to the Associated Press.news.laodong+3

Stephen Innes at Quintex Intel wrote that Bessent and He Lifeng "have already laid the groundwork" for the Trump-Xi meeting, "with trade, investment and artificial intelligence on the table, but this is not a market waiting for a grand bargain. It is waiting to see whether both sides can keep the next trade grenade in the drawer".finance.yahoo

Markets React Across the Region

Hong Kong's Hang Seng advanced 0.6% to 24,891.58, while the Shanghai Composite gained 0.6% to 3,933.37. South Korea's Kospi surged 1.8%, led by Samsung Electronics, which jumped 5%, and memory chipmaker SK Hynix ↗ 9.71%, which climbed 1%. Taiwan's Taiex rose 1.1%, with TSMC ↗ 4.25% adding 0.6%. Japan's Nikkei 225 was closed for a public holiday. U.S. futures pointed higher, with S&P 500 futures up 0.4% and Nasdaq 100 futures up 0.6%.bitget+2

Bloomberg strategist Mark Cranfield described the market mood as "Goldilocks" — a convergence of falling crude prices, rising stocks and mildly higher Treasury futures, with the positive start to U.S.-China talks as the catalyst.bitget

Oil Prices Ease as Hormuz Traffic Picks Up

Oil prices fell Monday morning, extending a four-session decline. Brent crude dropped roughly 2%, while benchmark U.S. crude also retreated, though both contracts remain around $100 a barrel — well above pre-war levels. The declines came as vessel traffic through the Strait of Hormuz rose to a six-month high. U.S. Central Command's Admiral Brad Cooper said the main channel had been cleared of sea mines, adding that "momentum is clearly building".krmg+2

The easing in energy prices offered some relief from the inflationary pressures that prompted the Federal Reserve to raise interest rates last week for the first time since 2023, a move followed by the Bank of Japan's decision to lift rates to a three-decade high.finance.yahoo+1