Asian markets opened the week on a mixed note as investor sentiment was buoyed by Wall Street’s record-breaking performance, driven by renewed trade optimism and the resumption of U.S.-Canada trade discussions.
The U.S. stock market soared to all-time highs last Friday, with the S&P 500 closing at 6,173.07 and the Nasdaq composite reaching 20,273.46. The Dow Jones Industrial Average also gained 1% to close at 43,819.27. The market rebound reflects strengthening investor confidence, especially after Canada announced it would withdraw its proposed digital services tax—an action that helped restart key trade talks with the U.S.
In Asia, performance varied across regional indexes. Japan’s Nikkei 225 rose 0.6% to 40,395.99, while China’s Shanghai Composite advanced 0.5% to 3,438.46, supported by a slight improvement in factory activity. South Korea’s Kospi also posted a 0.5% gain, and Australia’s S&P/ASX 200 increased 0.6% to 8,560.80.
Meanwhile, the Hang Seng in Hong Kong dipped 0.3%, Taiwan’s Taiex fell by 1.4%, and India’s Sensex was down 0.4%. Thailand’s SET Index rose 0.3%, showing steady investor confidence in Southeast Asia.
The recent trade momentum is creating a ripple effect across global markets. The temporary pause on new U.S. tariffs and progress in multiple trade dialogues are being viewed positively by investors and businesses alike, as they provide breathing room for companies to forecast more confidently and maintain supply chain efficiency.
The Federal Reserve continues to monitor inflation closely, with the personal consumption expenditures index rising to 2.3% in May. While the Fed has not implemented rate cuts in 2025 so far, economists anticipate potential easing later in the year, which could further support trade and investment flows.
As trade policies stabilize and multinational dialogues continue, market participants are optimistic that sustained cooperation will fuel further global economic growth.
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