Daijiworld Media Network – Tokyo
Tokyo, Oct 20: Asian markets opened higher on Monday after two weeks of declines, buoyed by easing trade tensions between the US and China. The MSCI Asia Pacific Index climbed 0.6%, while Japan’s Nikkei 225 surged 2.4%.
Investor sentiment improved after US President Donald Trump signaled that the higher tariffs threatened on Chinese imports were “unsustainable.” The development comes ahead of a fresh round of trade talks this week between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.
“The markets are pricing in that things will de-escalate,” said Kyle Rodda, senior market analyst at Capital.com. “However, the markets are likely to remain jittery until such backdowns are explicitly announced.”
Bessent described his latest discussions with He as “frank and detailed,” reaffirming plans for an in-person meeting next week. US Trade Representative Jamieson Greer also participated in the talks.
Market watchers believe that Washington and Beijing are both working to calm fears of a full-blown trade war that could shake the global economy. “There’s a prevailing belief that US-China trade headlines will remain skewed toward a positive outcome,” noted Chris Weston of Pepperstone Group.
Meanwhile, investors await China’s key economic data expected later today, which may indicate slower third-quarter growth despite strong exports. Political focus will also turn to Beijing’s four-day Fourth Plenum meeting, where policymakers are expected to discuss steps to sustain China’s strongest equity rally in eight years and stabilize the yuan.
Elsewhere in Asia, Japan’s markets gained ahead of a crucial vote on Tuesday that will determine the country’s next prime minister.
In geopolitical developments, Israel launched fresh strikes on Hamas targets in Gaza on Sunday and suspended aid shipments following a deadly ambush that killed two soldiers.
In Europe, French bond futures fell after S&P Global Ratings downgraded France’s credit rating to A+ from AA-, citing “elevated” budget uncertainty.
Market Snapshot (as of 9:45 a.m. Tokyo time):
• Stocks: Nikkei 225 up 2.4%, Hang Seng futures up 2.5%, Euro Stoxx 50 futures up 0.4%
• Currencies: Yen at 150.86 per dollar; euro steady at $1.1664
• Commodities: WTI crude down 0.3% to $57.36 a barrel; gold down 0.3% to $4,240.11 an ounce
• Crypto: Bitcoin down 0.9% to $107,896.98; Ether down 1.8% to $3,933.18