Asian Stocks Rise Ahead of Trump-Xi Summit

Chinese and Hong Kong stocks rose Monday as investors anticipated a September 24 summit between Donald Trump and Chinese President Xi Jinping in Washington. The Shanghai Composite and Hang Seng Index both climbed 0.6%, with notable gains in healthcare, property, and technology sectors across South Korea and Taiwan.

Market optimism followed Sunday talks in New York between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. During these preliminary discussions, the U.S. proposed a new AI safety notification mechanism. The two officials also discussed geopolitics and a potential reciprocal tariff reduction on $30 billion worth of goods.

Investors are now monitoring whether the upcoming summit will extend a trade truce established last year. While analysts from Goldman Sachs suggest a broad bilateral agreement remains unlikely, they noted a mutual desire for stability. Simultaneously, markets are reacting to elevated U.S. Treasury yields after the Federal Reserve raised interest rates for the first time in three years.