Asia Stocks Rise on Hope for Lower Tariffs After U.S.-China Talks

Asian stock markets climbed on Monday amid renewed optimism that trade tensions between the United States and China may ease following high-level talks between the two economic superpowers.

The rally was led by gains in Hong Kong, Shanghai, Tokyo, and Seoul, as investors welcomed signs of progress in dialogue between Washington and Beijing, which raised hopes of a potential rollback of some existing tariffs.

According to officials from both countries, the latest round of negotiations, held in Beijing over the weekend, focused on trade barriers, technology cooperation, and intellectual property protections. While no formal agreements were announced, statements from both sides highlighted “constructive engagement” and a shared commitment to stabilizing economic ties.

“The tone of the talks was markedly more positive than in recent months,” said Takashi Okada, an analyst at Nomura Holdings. “That’s enough to spark confidence in markets already hungry for signs of easing geopolitical friction.”

In Tokyo, the Nikkei 225 rose 1.3%, while Hong Kong’s Hang Seng Index surged 1.7%. China’s Shanghai Composite Index gained 1.1%, and South Korea’s Kospi was up 0.9%.

Export-heavy sectors led the gains, particularly technology, manufacturing, and consumer goods companies, which stand to benefit from reduced trade barriers.

Market watchers caution that while the tone is encouraging, concrete outcomes such as tariff reductions or formal trade deals may take time to materialize. Still, the optimism provided a welcome boost after weeks of volatility driven by global economic uncertainty and geopolitical tensions.