Asian shares rose on Monday, led by technology stocks, after US and Chinese economic officials held talks on trade and artificial intelligence ahead of a summit between Donald Trump and Xi Jinping. Oil prices fell sharply as Brent crude dropped on hopes that Saudi Arabia is restoring shipments disrupted by attacks on its pipeline network.
Hong Kong's Hang Seng gained 0.88%, South Korea's tech-heavy Kospi jumped 2%, and China's CSI 300 rose 0.6%. Tokyo markets were closed for the silver week holiday, which runs until Wednesday.
Trade and AI talks precede Trump-Xi summit
The gains followed talks between US and Chinese economic officials on Sunday, held ahead of a summit between Trump and Xi scheduled for Thursday in Washington. US Treasury Secretary Scott Bessent said the two countries had discussed setting up a channel to communicate about AI issues, called the "US-China AI dialogue." Chinese state media described the talks as candid, in-depth and constructive.
Stephen Innes, analyst at Quintex Intel, said Bessent and Chinese Vice Premier He Lifeng had laid the groundwork for the Trump-Xi meeting in New York, with trade, investment and artificial intelligence on the table. Innes said: "this is not a market waiting for a grand bargain" — it is waiting to see whether both sides can keep the next trade grenade in the drawer.
Oil slides as Saudi shipments recover
Oil prices fell sharply, adding to Friday's declines, on hopes that Saudi Arabia is moving to restore about half of the crude shipments disrupted by the stoppage of its east-west pipeline to the Red Sea, despite ongoing attacks by Yemen's Houthis. Brent crude, the global benchmark, fell just over 2% to $101.8 a barrel, a drop of $2.01.
The benchmark remains above $100 and significantly higher than pre-Iran war levels of around $72 a barrel. There was relief that a bombing campaign threatened by Trump against Iran has not happened yet, even as governments across the Middle East brace for a possible escalation.
Source: Business | The Guardian
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