Asian markets up on news of U.S.-China trade agreement

May 12, 2025 (MLN): Asian markets saw positive movement on Monday after the White House announced a “trade deal” with China, although specific details were not disclosed.

Both the U.S. and China indicated a successful outcome from the high-stakes trade talks. U.S. officials highlighted a deal aimed at reducing the trade deficit, while Chinese leaders referred to an “important consensus” reached between the two nations.

U.S. Treasury Secretary Scott Bessent described the talks as highly productive, while Chinese Vice Premier He Lifeng mentioned that a joint statement containing “good news for the world” would be released on Monday.

In regional stock movements, Indian stocks led gains after a ceasefire with Pakistan held over the weekend, following intense clashes between the two countries.

The benchmark Nifty 50 surged by 2.29% at the open, while the BSE Sensex gained 2.27%.

In other markets, Hong Kong’s Hang Seng Index pared early gains to close 0.88% higher, while mainland China’s CSI 300 index rose by 0.61%.

Japan’s Nikkei 225 fell by 0.17%, and the broader Topix index lost 0.21%. South Korea’s Kospi index increased by 0.49%, while the Kosdaq gained 0.12%. In Australia, the S&P/ASX 200 added 0.17%.

U.S. futures jumped, with investors eagerly awaiting further details on the trade deal between the U.S. and China, as CNBC reported.

This came after Wall Street's key benchmarks saw declines in Friday’s session. The Dow Jones Industrial Average lost 119.07 points, or 0.29%, to close at 41,249.38.

The S&P 500 edged down by 0.07% to settle at 5,659.91, while the Nasdaq Composite ended little changed at 17,928.92.

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