TOKYO — Asian markets took heart Monday from revived hopes for progress in trade negotiations between the U.S. and China after U.S. President Donald Trump met with China’s Xi Jinping at the Group of 20 Summit in Japan.
But the latest data suggested the prolonged trade conflict between Washington and Beijing is taking a further toll on regional growth.
Japan’s benchmark Nikkei 225 added 2.1% to 21,729.97. Australia’s S&P/ASX 200 gained 0.4% to 6,648.10. South Korea’s Kospi was marginally higher at 2,131.05. Hong Kong’s markets were closed for a holiday. The Shanghai Composite rose 2.1% to 3,042.50.
Wall Street ended last week on an upbeat note after the Federal Reserve raised expectations that it is prepared to cut interest rates if needed to keep the economy growing.
The S&P 500 index rose 0.6% to 2,941.76. The index ended the month with a 6.9% gain. The Dow Jones Industrial Average gained 0.3% to 26,599.96. The Nasdaq composite rose 0.5% to 8,006.24.
The Trump-Xi meeting in Japan marked the first time the two leaders had met since the dispute over trade and technology escalated following 11 rounds of negotiations.
While the agreement to resume talks forestalls a worsening in the conflict it remains unclear whether there will be a resolution. The last time Trump and Xi met — in early December at a G-20 gathering in Buenos Aires, Argentina — they also reached a cease-fire that injected new life into the talks. But the momentum didn’t last.
The trade dispute has led both countries to levy billions of dollars’ worth of tariffs on each other’s exports, raising concerns over the impact on global economic growth and corporate profits.
“Asia markets will have the trade truce to cheer at the start of the fresh week following the Trump-Xi meeting on Friday,” said Jingyi