HONG KONG – Asian markets mostly rose Monday as investors awaited further developments ahead of an expected meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Washington later this week. Trade, artificial intelligence and broader geopolitical tensions are expected to feature in the talks.
U.S. stock futures moved higher after Treasury Secretary Scott Bessent described Sunday’s discussions with Chinese Vice Premier He Lifeng in New York as “a very successful engagement.” The talks were held ahead of the planned Trump-Xi meeting.
Asian technology shares gained as enthusiasm over artificial intelligence continued to support the sector, despite calls from some U.S. technology executives for a slower pace of AI development because of safety concerns. South Korea’s Kospi climbed 1.8% to 7,018.98. Samsung Electronics surged 5%, while memory-chip producer SK Hynix advanced 1%.
Taiwan’s Taiex increased 1.1%, while Taiwan Semiconductor Manufacturing Co., the island’s leading AI-chip manufacturer, gained 0.6%.
Hong Kong’s Hang Seng Index rose 0.6% to 24,891.58. The Shanghai Composite also added 0.6%, reaching 3,933.37.
Japan’s Nikkei 225 will remain closed through Wednesday for a public holiday.
Australia’s S&P/ASX 200 was nearly flat at 8,730.40.
India’s Sensex gained 0.6%.
Bessent said Sunday that the latest U.S.-China discussions covered both trade and AI. The two countries have been negotiating reciprocal tariff cuts involving $30 billion in goods from each side.
Trade, tariffs and AI safety are expected to be among the issues Trump and Xi address this week. The conflict in Iran, wider Middle East developments and China’s relationship with Iran could also enter the discussion.
Oil prices retreated early Monday as vessel traffic and energy shipments through the Strait of Hormuz increased. The waterway remains largely closed, however, and uncertainty persists over tensions between the United States and Iran. Pressure on global supplies has also grown amid Saudi Arabia’s confrontation with the Iran-backed Houthis and the kingdom’s closure of a major oil pipeline.
Brent crude, the global benchmark, dropped 2.1% to $101.67 a barrel. The price stood near $72 a barrel in late February, before the war in Iran began.
U.S. benchmark crude fell 2.2% to $93.99 a barrel.
The U.S. dollar strengthened to 157.02 Japanese yen from 156.81 yen. The euro traded at $1.1476, down from $1.1483.
On Wall Street, the S&P 500 rose 0.2% Friday. The Dow Jones Industrial Average slipped 0.2%, while the technology-focused Nasdaq composite advanced 0.4%.
Investors are also tracking the bond market after the yield on the 10-year U.S. Treasury reached 5%. The Federal Reserve raised interest rates last week for the first time in three years, while the Bank of Japan lifted rates to a 31-year high.
Government bond yields have remained elevated since the war began, reflecting heightened inflation concerns tied to the energy shock as well as growing U.S. government debt.
___
AP Business Writer Stan Choe contributed to this report.
Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.