Asia-Pacific markets were set to open higher on Monday after top U.S. and Chinese trade negotiators announced they had reached a framework agreement on several disputed issues. This development paves the way for U.S. President Donald Trump and Chinese President Xi Jinping to sign off on the terms.
In an interview with CBS News, U.S. Treasury Secretary Scott Bessent stated that Trump’s proposed 100% tariffs on Chinese imports are “effectively off the table.” He added that China is expected to make significant soybean purchases and delay broad restrictions on rare earth exports. However, Bessent noted that the U.S. will maintain its current export controls on China.
Japan’s benchmark Nikkei 225 index was poised for a higher open, with its futures contract in Chicago trading at 50,335 and its counterpart in Osaka at 49,560, compared to the index’s last close of 49,299.65. Futures of Hong Kong’s Hang Seng Index indicated a stronger open, trading at 26,256 versus the index’s previous close of 26,160.15. Australia’s ASX/S&P 200 was trading 0.54% higher at the open.
Last Friday, all three major U.S. averages closed at record highs as cooling inflation data boosted optimism among investors. This suggested that the Federal Reserve could remain on its rate-cutting path, which would support the U.S. economy and justify higher equity valuations.
The Dow Jones Industrial Average rose 472.51 points, or 1.01%, to 47,207.12, marking its first close above the 47,000 level ever. The S&P 500 added 0.79% to 6,791.69, while the Nasdaq Composite climbed 1.15% to 23,204.87.
Investors are also looking ahead to a widely expected interest rate cut by the Federal Reserve and a series of major earnings reports from Big Tech companies.
CNBC’s Sean Conlon and Pia Singh contributed to this report.
https://www.cnbc.com/2025/10/27/asia-pacific-markets-monday-hang-seng-index-nifty-50-kospi-nikkei-225-us-china-trade-trump-xi.html
