By Ian Maleve
Asian stock markets rose on Monday as investor sentiment improved following signs of easing tensions between the United States and China over trade tariffs.
The truce between the two economic superpowers, which halts new tariffs and sets the stage for further negotiations, provided a fresh wave of optimism across global financial markets.
Major indexes across the Asia-Pacific region posted gains. In Japan, the Nikkei 225 advanced by over 1.2 percent, while South Korea’s KOSPI climbed 0.9 percent, buoyed by gains in semiconductor and technology stocks.
Hong Kong’s Hang Seng Index added nearly 1.5 percent, driven by strength in consumer and financial shares. Chinese mainland markets also reflected the upbeat mood, with the Shanghai Composite rising by 0.7 percent.
The rally comes in response to a weekend announcement that both Washington and Beijing have agreed to pause additional tariffs and resume trade dialogue.
The agreement is seen as a temporary but significant step toward de-escalating a long-running trade dispute that has weighed heavily on global growth and disrupted supply chains.
Investors reacted positively to the prospect of improved trade flows and reduced policy uncertainty, especially in sectors that are highly sensitive to global demand, such as manufacturing, electronics, and logistics.
Technology shares led the gains across several exchanges, reflecting renewed confidence in supply chain stability and export potential.
Currency markets also responded to the truce, with the Chinese yuan strengthening against the U.S. dollar and regional currencies such as the South Korean won and Japanese yen also edging higher. The relative stability of the dollar following the news further supported risk sentiment.
Analysts cautioned, however, that while the ceasefire in trade tensions is encouraging, markets remain vulnerable to setbacks if future talks falter or geopolitical tensions elsewhere intensify.
Still, for now, the tariff pause appears to have offered a much-needed reprieve for Asian markets, allowing investors to shift focus to corporate earnings and economic data due later in the week.
