Asia markets rise ahead of US-China trade talks; investors assess latest economic data

Asia stock markets rise on Monday as investors assessed potential easing of US-China trade tensions and the latest economic data. Market participants also turned their attention to upcoming US-China trade talks , senior officials from the U.S. and China are set to begin a new round of talks in London today, signaling easing trade tensions. Gold prices dropped to around $3,300 per ounce on Monday, marking a third consecutive session of decline and reaching its lowest level in a week. Japan ( NKY:IND ) rose 0.89% to above 38,000 while the broader Topix Index gained 0.7% to 2,788 on Monday, with Japanese shares rising for the second straight session. The Japanese yen appreciated past 144.5 per US dollar on Monday, rebounding after two consecutive days of losses, as revised data showed the country’s first-quarter GDP was flat. Japan’s economy was flat in the first quarter —an improvement from the previously reported 0.2% contraction. While the revision was positive, it still marked a notable slowdown from the 0.6% growth seen in the final quarter of 2024. Adding to the mixed economic picture, Japan’s current account surplus narrowed in April and came in below market expectations. The gauge for Japan’s service sector rose to 44.4 in May 2025, up from 42.6 in the previous month — its lowest level since February 2022 — and above market expectations of 43.9. China ( SHCOMP ) rose 0.33% to above 3,390 while the Shenzhen Component gained 0.9% to 10,277 on Monday, with mainland stocks reaching multi-week highs as officials from Beijing and Washington are set to resume trade negotiations in London later today, and the offshore yuan strengthened to around 7.18 per dollar on Monday, ending a two-session losing streak, supported by potential easing of US-China trade tensions that overshadowed deflationary concerns. Meanwhile, deepening deflationary concerns pressured yields as China’s consumer prices fell for a fourth straight month and producer prices saw their steepest drop in nearly two years. Separately, the latest trade data revealed a decline in imports, driven by weak consumption. Although export growth missed forecasts even with a temporary US trade truce, the country still achieved a $103 billion surplus, surpassing estimates. Hong Kong ( HSI ) rose 0.96% to 24,138 during Monday morning trading, rebounding from losses in the prior session and hitting a 12-week high, amid gains across all sectors. India ( SENSEX ) rose 0.47% Australia ( AS51 ) market closed. The Australian dollar rose to around $0.651 on Monday, extending gains from the previous week. In the U.S., on Friday, all three major indexes ended higher boosted by a stronger-than-expected jobs report and renewed optimism around US-China trade talks On the economic front, attention is turning to key inflation readings, with the CPI due Wednesday and the PPI set for release on Friday. U.S. stock futures held steady on Monday as investors prepared for a week packed with potential market-moving developments: Dow -0.18% ; S&P 500 -0.19% ; Nasdaq -0.25% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s May CPI declines fourth consecutive month, PPI deflation eases to two-year low China’s trade surplus widens amid weaker exports and deeper import slump Japan’s Q1 GDP revised upward, showing no growth but avoids contraction China to send Vice Premier He Lifeng to UK for U.S. trade talks China approves some rare earth export applications ahead of U.S. trade talks

Source: Seeking Alpha