Asia markets surge as Nikkei breaks 50,000 on trade optimism

October 27, 2025 (MLN): Asian markets kicked off the week with strong gains, led by Japan’s Nikkei 225, which surged past the 50,000 mark for the first time ever amid optimism over progress in U.S.-China trade negotiations and continued momentum from Wall Street.

 The Nikkei gained more than 2%, while the broader Topix advanced 1.61%.

Japanese Prime Minister Sanae Takaichi is set to meet U.S. President Donald Trump during his visit to Japan this week, as CNBC reported.

According to a note from Crédit Agricole CIB, Takaichi is expected to emphasize expanding domestic demand through a “high-pressure economy,” a strategy analysts say could help lift Japan out of its long-running deflationary stagnation and narrow the U.S. trade deficit  a “win-win” outcome for both countries.

Elsewhere in the region, South Korea’s Kospi jumped 2.1% to cross the 4,000 mark for the first time after setting a record high on Friday, while the Kosdaq climbed 1.45%. Hong Kong’s Hang Seng Index rose 1.15%, and China’s CSI 300 gained 0.83%. Australia’s S&P/ASX 200 edged up 0.54% in early trade.

The rally came after reports that top U.S. and Chinese negotiators had reached a framework agreement on several contentious trade issues, setting the stage for Trump and Chinese President Xi Jinping to formally approve the terms.

U.S. Treasury Secretary Scott Bessent told CBS News on Sunday that Trump’s proposed 100% tariffs on Chinese imports are now “effectively off the table.” He added that China is expected to ramp up soybean purchases and postpone restrictions on rare earth exports, though the U.S. will maintain existing export controls on China.

On Wall Street, all three major U.S. indexes closed at record highs Friday after cooling inflation data fueled hopes that the Federal Reserve will stay on its rate-cutting path.

The Dow Jones Industrial Average climbed 472.51 points, or 1.01%, to finish at 47,207.12, its first-ever close above 47,000. The S&P 500 rose 0.79% to 6,791.69, and the Nasdaq Composite gained 1.15% to 23,204.87.

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