Asian stock markets opened higher on Monday as investors responded positively to progress in US-China discussions on trade and artificial intelligence, while falling oil prices provided additional relief to markets concerned about energy costs.
The MSCI Asia-Pacific index excluding Japan gained about 0.9%, with South Korea and Taiwan recording stronger advances of around 1.4% and 1% respectively. Japan’s markets were closed for a public holiday, although Nikkei futures also moved higher.
Technology stocks led much of the regional gains as continued demand for artificial intelligence infrastructure boosted chipmakers. Investors are closely watching the latest discussions between Washington and Beijing ahead of an expected meeting between US President Donald Trump and Chinese President Xi Jinping later this week.
The weekend talks between senior US and Chinese officials in New York included discussions on trade and artificial intelligence. The two sides also moved towards establishing a framework for continued dialogue on AI, helping to ease some concerns about the potential for renewed tensions between the world’s two largest economies.
Oil prices, meanwhile, extended their decline as increased crude flows from the Middle East eased some concerns about supply disruptions. Brent crude fell by more than 1.5% to around $102 a barrel, while US crude also declined.
The lower oil prices could reduce some pressure on businesses and consumers, particularly in economies heavily dependent on imported energy. However, markets remain sensitive to developments in the Middle East, US interest rates and government bond yields.
Investors are now awaiting further details from the US-China discussions, alongside developments at the United Nations and upcoming economic data, as they assess whether the current improvement in market sentiment can be sustained.
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