BANGKOK/SINGAPORE (Reuters): Emerging Asian equities rose on Monday ahead of key US-China trade talks in London, while regional currencies edged up as the dollar weakened.
Top US and Chinese trade officials will meet for a second round of talks, days after Presidents Trump and Xi held their first post-inauguration call to address escalating trade tensions.
“Even though it is too early to say whether or not both sides can reach some form of an agreement, the fact that the talks reduce the likelihood of near term escalation is seen as a positive,” said Khoon Goh, head of Asia research at ANZ.
MSCI’s gauge of Asian emerging market equities rose as much as 1% to its highest level since October 8, 2024.
Taiwan stocks rose 0.6% and Philippine shares added 0.5%. Chinese stocks gained 0.4%.
South Korean shares climbed 1.6%, supported by post-election policy optimism under newly elected President Lee Jae-myung.
The benchmark index had gained 4% last week. A positive session on Wall Street on Friday, driven by better-than-expected US jobs data, helped ease concerns over a potential US recession and is lifting investor confidence today, Goh added.
Data showed that nonfarm payrolls increased by 139,000 jobs last month fewer, than the 147,000 jobs added in April but exceeding the 130,000 gain forecast in a Reuters poll of economists.
Regional currencies were marginally higher, with the Singapore dollar rising 0.3% and the Malaysian ringgit falling 0.2%.
The dollar slipped 0.2%, retracing part of the 0.5% gain it posted on Friday, as initial enthusiasm over a strong US employment report gave way to caution ahead of key US-China trade talks.
Analysts at Nomura expect markets to remain choppy and range-bound through summer amid ongoing tariff uncertainties.
“Market attention remains fixated on the expiration of the 90-day pause on tariffs (subject to court rulings).”
Markets in Indonesia were closed for a public holiday. – Reuters