Most Read: Markets Weekly Outlook – Trump-Xi Meeting, Earnings & Central Banks
Global stock markets continued their record-breaking rally, fueled by the belief that the US and China are close to a trade deal.
Top officials from the US and China have reportedly agreed on several major points in their trade talks. This progress makes it likely that Presidents Donald Trump and Xi Jinping can now finalize a trade deal, which would be a welcome relief for global markets.
Showing confidence in a deal, China’s state media encouraged both countries to protect the positive progress made in recent discussions before the critical meeting between the two leaders.
Japan Highlights
Historic Highs: Japan’s main stock index, the Nikkei 225, closed above the 50,000 level for the first time ever on Monday, continuing a series of record highs.
The Numbers: The Nikkei jumped 2.46% to close at 50,512.32, marking a 26.6% gain so far this year.
The Driver: This surge is largely driven by expectations that Japan’s new Prime Minister, Sanae Takaichi, will introduce major economic spending plans. The Nikkei has risen 2.5% since her election last week.
Key Stock Movers
The rally was also boosted by strong expectations for US AI companies like Nvidia.
SoftBank Group, a major tech investor, rose 6.66%, giving the Nikkei its biggest lift.
Companies connected to the AI boom also soared, including Advantest (a chip-testing equipment maker for Nvidia), which jumped 6.53%, and Fujikura (which makes optical fiber for data centers), which rose nearly 8%.