Asian Stocks Advance as Tech Shares Rally on U.S.-China Trade Optimism

Asian stocks advanced on Monday, with technology shares posting significant gains, as investors grew optimistic about U.S.-China trade relations ahead of a summit between President Donald Trump and President Xi Jinping.

Investor sentiment was buoyed by weekend talks in New York between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, which both sides described as positive. The discussions included an agreement to establish a dialogue on artificial intelligence before the leaders meet on Thursday.

Tech Sector Leads Regional Gains

The positive diplomatic signals fueled a rally in the tech sector. South Korea’s KOSPI index climbed 1.7%, with industry giant Samsung Electronics (KS:005930) jumping 4.79% and SK Hynix (KS:000660) adding 0.92%.

Chinese markets also moved higher on hopes for a trade truce. The blue-chip Shanghai Shenzhen CSI 300 index gained 0.42%, the Shanghai Composite rose 0.55%, and Hong Kong's Hang Seng index advanced 0.55%. The upcoming summit is expected to address key issues such as tariffs, technology controls, and rare-earth exports.

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Broader Market and Commodity Moves

Other regional markets saw more modest movements. Australia's S&P/ASX 200 traded flat, while Singapore's Straits Times Index edged up 0.25%. Trading volumes were limited as Japanese markets were closed for a public holiday.

A fourth consecutive session of declines in oil prices also supported the risk-on mood, easing some investor concerns about inflation. Brent crude futures traded near $103 a barrel amid signs of increased Middle Eastern supply. However, analysts noted that crude prices remain elevated due to ongoing geopolitical risks involving the United States and Iran. Investors also continue to monitor U.S. Treasury yields, which have been pushed higher by expectations of further Federal Reserve interest rate increases.