Asian stock markets opened higher on Monday as traders anticipated progress in U.S.-China trade negotiations, with shares rising amid optimism over potential tariff reductions.
A report suggested that the U.S. might remove most tariffs on Chinese goods, following President Donald Trump's recent remarks about easing trade barriers. A summit between Trump and Chinese leader Xi Jinping to finalize a deal could occur later this month, according to media outlets.
U.S. stock futures showed strong gains, with E-mini S&P 500 and Dow futures both rising 0.4% on Monday. European markets also showed positive momentum, with London’s FTSE futures up 0.5%.
Chinese shares led gains in the region, with the blue-chip index climbing up to 3%. Australian and Hong Kong markets also posted gains, while Japan’s Nikkei rose over 1%. The MSCI Asia-Pacific index added 0.3% to its year-to-date rise of nearly 10%.
Analysts highlighted key upcoming events, including the Trump-Xi summit and China’s National People’s Congress, as critical for sustaining market confidence. JPMorgan’s Tai Hui noted that policy developments in the U.S. and China would be pivotal for investor sentiment.
Policy Shifts Expected ¶
March 2019 emerged as a pivotal month for global markets, with U.S. Federal Reserve policy decisions and Brexit-related developments in the UK. Analysts suggested central banks might adopt more accommodative stances amid economic slowdown concerns.
Recent economic data showed manufacturing activity in the U.S. hitting a low since November 2016, while consumer sentiment and inflation figures pointed to a need for policy adjustments. The dollar weakened against major currencies, with the dollar index falling 0.1% to 96.46.
Oil prices rose on Monday, with Brent crude up 21 cents to $65.28 per barrel. The Australian dollar fluctuated amid mixed domestic data, while the euro remained stable at $1.1361.
