Asian Markets Climb on Trade Optimism, Data Surprises Highlight Fragile Recovery

Regional Equities Gain Ahead of U.S.-China Talks

Most Asian stock indices advanced on Monday, buoyed by anticipation of high-level U.S.-China trade negotiations in London and upbeat domestic data revisions.

• South Korea's KOSPI led gains with a 1.7% rise, extending last week's rally after the liberal party's electoral win.

• Japan's Nikkei 225 climbed 1% following a smaller-than-expected Q1 GDP contraction.

• China's CSI 300 and Shanghai Composite each added about 0.3%, while Hong Kong's Hang Seng jumped 1.5% on strength in tech names.

Tech Stocks and Macro Drivers

Technology Outperforms

Chinese internet giants and South Korean semiconductor makers logged some of the largest gains, underscoring the sensitivity of tech shares to trade developments.

Data Points to Watch

• China's CPI inflation slowed for the fourth month in a row, reflecting weak domestic demand under trade pressure.

• Producer Price Index (PPI) fell more than expected, signalling continued cost headwinds for manufacturers.

• China's trade balance improved in May, but export growth missed forecasts and imports contracted sharply.

To track key economic releases across Asia and beyond, investors rely on the Economics Calendar API for real-time updates on inflation, GDP, and trade figures.

Japan Shows Resilience Despite Trade Headwinds

Japan's revised Q1 GDP data reported flat quarter-on-quarter growth, led by a 0.1% upward revision in private consumption. Capital spending was trimmed, yet the overall revision pointed to more resilience than first estimated.

Japan continues to seek tariff exemptions in trade talks with the U.S., reinforcing the country's focus on balancing domestic recovery with global trade negotiations.

Broader Asia: Cautious Optimism

• Singapore's Straits Times rose 0.2%, and Nifty 50 Futures ticked up 0.1% ahead of today's open.

• India's market momentum follows the Reserve Bank of India's unexpected rate cut, as well as corporate news around HDFC Bank.

• Australian markets were closed for a public holiday.

For a deeper dive into sectoral performance trends during these market shifts, the Sector Historical (Market Overview) API provides historical return data across key Asian indices and sectors.