Asian shares advance as details awaited on progress in China-US trade talks

In Hong Kong, Asian shares rose on Monday following fruitful trade discussions between China and the U.S. that were described as making significant progress. U.S. futures and oil prices also saw gains. A joint statement is expected to be released after the weekend meetings in Geneva. Investors are keeping an eye on various global issues like the India-Pakistan conflict, the war in Ukraine, and tensions in the Middle East.

The Sensex in India surged by 2.5% after both India and Pakistan reached a truce to ease their military standoff. The stock markets in Hong Kong and Shanghai also saw positive movements. Chinese EV battery maker CATL announced plans to raise close to $4 billion in a share listing.

U.S. Treasury Secretary Scott Bessent noted progress in the trade talks but did not provide specifics. Chinese Vice Premier He Lifeng mentioned an agreement to establish a consultation mechanism for further trade and economic discussions.

Stock markets in Japan, South Korea, Australia, and Taiwan witnessed modest gains. In the U.S., stocks had a mixed performance on Friday, with the S&P 500 and Dow Jones dipping slightly while the Nasdaq edged up. Earnings reports from companies are influencing market movements, with some companies like Expedia and Sweetgreen reporting weaker results while others like Lyft and Insulet posted stronger profits.

Oil prices and currency exchange rates also saw movements, with U.S. benchmark crude oil and Brent crude prices rising, and the U.S. dollar strengthening against the Japanese yen and the euro.