Japan’s Nikkei 225 breached the 50,000 mark for the first time on Monday, as investors welcomed progress in trade talks between the US and China and strong momentum from Wall Street.
The benchmark index rose more than 2%, while the Topix added 1.61%.
Japanese Prime Minister Sanae Takaichi is expected to meet with US President Donald Trump this week during his visit to Japan.
“The message it will convey is expected to be a significant increase in domestic demand through an economy under high pressure,” Crédit Agricole CIB said in a note on Monday.
A strong expansion in domestic demand in the country “would fully lift Japan out of deflationary structural stagnation” and make progress towards reducing the US trade deficit, resulting in a win-win situation for both countries, strategists said.
Across Asia, South Korea’s Kospi jumped 2.1% to surpass 4,000 points for the first time after hitting a record high on Friday, while small firm Kosdaq added 1.45%. Hong Kong’s Hang Seng index rose 1.15%, while the mainland’s CSI 300 gained 0.83%.
K-pop entertainment agency Hybe rose nearly 10% after Bloomberg reported that supergroup BTS is planning a 65-city world tour, half of which will be in North America, SEEbiz reports.
Australia’s ASX/S&P 200 rose 0.54% in early trade.
The regional surge followed reports that top US and Chinese trade negotiators had agreed a framework on several contentious issues, paving the way for Trump and Chinese President Xi Jinping to sign off on terms.
