Asian equities advanced on Monday, supported by growing expectations that the U.S. Federal Reserve will deliver a rate cut this week, along with fresh signs that tensions between Washington and Beijing are easing.
China’s CSI 300 gained 0.7% and the Shanghai Composite rose 0.8%, while Hong Kong’s Hang Seng Index added 1%, lifted by a 1.2% jump in tech shares.
South Korea’s KOSPI surged 2.3% to a record high as chip giants Samsung Electronics and SK Hynix continued to rally. Sentiment also improved in Japan, where investors anticipate pro-growth fiscal measures from newly appointed Prime Minister Koichi Chinai.
Market confidence received an additional boost after media reported that U.S. and Chinese negotiators reached a preliminary trade arrangement in Kuala Lumpur, agreeing to delay new tariffs. Investors now await the conclusion of the Fed’s two-day policy meeting on Wednesday, with a 25-basis-point cut widely expected and attention turning to guidance for further easing.