Asian Stocks Gain on Trade Talks, Meta Lifts Tech: Markets Wrap

(Bloomberg) — Asian stocks rose ahead of trade talks between China and the US Monday that have the potential to cool tensions between the world’s two largest economies.

A regional stock gauge jumped 0.9% before the London talks with technology shares advancing on Meta Platforms Inc.’s investment plans. Chinese shares listed in Hong Kong jumped 1.2% and were poised to enter a bull market — trader parlance for a rise of 20% from a recent low. A key gauge for emerging market equities rose 0.7%, set for its highest close since February 2022.

The dollar declined against all of its Group-of-10 peers. Yields on 10-year Treasuries dipped 1 basis point to 4.49%, after surging Friday. Equity-index futures for the S&P 500 and European stocks declined 0.1%.

Trade tensions are receding between President Donald Trump and China’s Xi Jinping as an impasse on critical minerals was broken, paving the way for further trade talks. Adding to the optimism in the stock market was the surprise in jobs data Friday, which eased fears of a recession in the world’s biggest economy.

“Keep the portfolio tilted toward risk” due to the dealmaking phase in Trump’s trade policy, Homin Lee, a senior macro strategist at Lombard Odier, said in a Bloomberg TV interview. There is scope for “bilateral deals before the July 9 deadline for the reciprocal tariffs,” he added.

Stock markets have rebounded following a tumultuous two-month period, with the S&P 500 gaining for the fifth week in seven. Asian and European equity benchmarks have risen seven times in the past eight weeks.

The main focus is on the trade negotiations. The US and Chinese negotiators are set to open their second round of trade talks Monday, the first since Trump and Xi finally broke a logjam. That’s offering a glimmer of hope that the world’s two largest economies can defuse tensions over Chinese dominance in rare-earth minerals.

The extent of damage from the tariff war could be seen in Chinese exports, which rose less than expected last month. The worst drop in shipments to the US in more than five years counteracted strong demand from other markets.

Chinese exports of rare earths, a group of 17 minerals at the center of a trade dispute with Washington, rose 23% in May from the previous month, according to customs data on Monday.

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Both sides had accused the other of reneging on a deal reached in May in Geneva, where they tried to start dialing back the trade war. 

Ahead of the talks, China granted approval to some applications for the export of rare earths. Boeing Co. has also begun shipping commercial jets to China for the first time since early April, indicating a reopening of trade flows.

“Trade policy will remain the big macro uncertainty,” Kyle Rodda, a senior market analyst at Capital.com, wrote in a note Monday about the US-China negotiations. “Signs of further momentum in talks could give the markets fresh boost to kick off the week.”

Later this week, attention will turn to the sale of government bonds in the US. The Treasury is set to sell $22 billion of 30-year bonds on Thursday, part of its regularly scheduled borrowings. This comes after global investor pushback against long-term government debt. Investors will also be watching US inflation print this week.

Separately, China’s consumer deflation extended into a fourth month, as price wars intensified while a spending boost during two national holidays failed to offset the drag from weak domestic demand.

On Friday, nonfarm payrolls increased 139,000 last month after a combined 95,000 in downward revisions to the prior two months. The unemployment rate held at 4.2%, while wage growth accelerated.

The payrolls figure helped alleviate concerns of a rapid deterioration in labor demand as companies contend with higher costs related to tariffs and prospects of slower economic activity.

In other trade news, a US trade team that’s currently in India for negotiations has extended its stay, according to people familiar with the matter. That’s a sign talks are progressing ahead of a July deadline.

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 0.2% as of 6:50 a.m. London time
• Nasdaq 100 futures fell 0.2%
• The MSCI Asia Pacific Index rose 0.8%
• The MSCI Emerging Markets Index rose 0.7%
• Japan’s Topix rose 0.5%
• Hong Kong’s Hang Seng rose 0.9%
• The Shanghai Composite rose 0.3%
• Euro Stoxx 50 futures were little changed

Currencies

• The Bloomberg Dollar Spot Index fell 0.2%
• The euro rose 0.2% to $1.1421
• The Japanese yen rose 0.3% to 144.39 per dollar
• The offshore yuan was little changed at 7.1867 per dollar
• The British pound rose 0.2% to $1.3557

Cryptocurrencies

• Bitcoin fell 0.7% to $105,474.89
• Ether fell 1.8% to $2,486

Bonds

• The yield on 10-year Treasuries declined one basis point to 4.49%
• Japan’s 10-year yield advanced two basis points to 1.470%

Commodities

• Spot gold rose 0.2% to $3,315.61 an ounce
• West Texas Intermediate crude fell 0.1% to $64.51 a barrel

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Abhishek Vishnoi.

©2025 Bloomberg L.P.