Asian stocks mostly rose on Monday, buoyed by optimism over U.S. President-elect Donald Trump’s possible softer stance on China and a positive lead from Wall Street’s strong gains last Friday. Japan’s Nikkei 225 and TOPIX rallied 1.5%, while Hong Kong’s Hang Seng gained 1.6%. Chinese shares also advanced, with the Shanghai Shenzhen CSI 300 up 0.8% and the Shanghai Composite rising 0.5%, as the People’s Bank of China kept its loan prime rate unchanged, signaling a measured approach amid uncertainties over potential U.S. trade tariffs.
Trump’s recent call with Chinese President Xi Jinping raised hopes of improved Sino-U.S. relations, although concerns linger about his potential record number of executive orders, including trade tariffs on Chinese imports, which could disrupt global trade and weigh on export-driven economies like China, South Korea, and Singapore. Broader Asian markets, including Australia’s ASX 200, rose modestly, while Singapore’s Straits Times index lagged, and South Korea’s KOSPI remained flat. Attention now shifts to Trump’s inauguration and upcoming key economic data and central bank meetings.
