Key Takeaways
- U.S. and Asian stock markets surged as investors grew hopeful about progress in U.S.–China trade talks.
- President Trump’s remarks about being close to a trade deal with China boosted market sentiment.
- Investors are now watching key central bank meetings, especially the U.S. Federal Reserve, which is expected to cut rates by 25 basis points.
Asian shares rallied and safe-haven assets weakened this week as investors cheered signs of progress in U.S.–China trade talks as U.S. President Donald Trump landed in Tokyo on Monday.
Speaking ahead of his meeting with Chinese leader Xi Jinping in South Korea later this week, Trump said the U.S. was poised to “come away with” a trade deal, as well as a deal on TikTok as early as Thursday.
Stocks Soar As Trump Lands In Tokyo
Trump landed in Tokyo on Monday, Oct. 27, ahead of scheduled talks with Prime Minister Sanae Takaichi at Akasaka Palace.
The meeting is expected to focus on securing a $550 billion investment pledge from Japan and urging Tokyo to take on a larger share of regional defense costs.
Trump’s visit also aims to boost confidence in markets ahead of his planned summit with Chinese President Xi Jinping later this week in South Korea.
On Monday, Japan’s Nikkei jumped 2.5% to top 50,000 points for the first time, buoyed by optimism over Prime Minister Sanae Takaichi’s pro-growth agenda.
South Korea’s KOSPI also rose 2.9% to a record high, while China’s CSI300 added 1.2% and Hong Kong’s Hang Seng climbed 1.1%.
“It doesn’t get much bigger than this: the week ahead will set the tone for the rest of the year in financial markets,” said Kyle Rodda, senior analyst at Capital.com.
“All the big thematics are converging — central bank decisions, U.S.–China trade talks, and a wave of U.S. tech earnings. It’s a collision of the three biggest drivers of the markets right now: rate cuts, trade policy uncertainty, and tech profits.”
U.S. stock futures also tracked higher, with Nasdaq futures up 0.9% and S&P 500 futures 0.8% higher.
U.S. and China Tensions Easing
Signs of thawing relations between Washington and Beijing added to the upbeat tone in markets this week.
On Monday, Trump said that the two sides were ready to “come away with” a trade deal, along with a possible final agreement on TikTok as early as Thursday.
To begin his week-long trip, Trump signed agreements with leaders from Malaysia, Cambodia, Thailand, and Vietnam covering trade, minerals, and technology cooperation.
The four Southeast Asian nations, all members of the ASEAN bloc, pledged to lower trade barriers and expand purchases of U.S. goods.
“U.S.–China trade tensions are easing, and the tit-for-tat brinkmanship that sparked the recent pullback on Wall Street is settling down,” said Rodda.
Adding: “A meeting between Trump and Xi would likely not be scheduled if there weren’t some good news to sell.”
Rodda said China may curb its rare earth export restrictions while Washington unwinds some tariffs and steps back from threats of tighter technology controls.
Central Banks and Tech Earnings
Investors now look to central bank meetings in the U.S., Japan, Canada, and Europe.
The Federal Reserve is widely expected to cut rates by 25 basis points after softer-than-expected inflation data.
“The Fed is all but certain to cut interest rates this week,” Rodda said.
Adding: “Inflation remains sticky and above target, but markets believe the Fed will keep turning a blind eye to protect the labour market.”
Earnings from major U.S. technology firms, including Microsoft, Apple, and Meta, will also test market optimism this week after months of gains driven by AI enthusiasm.
Charu Chanana, chief investment strategist at Saxo, told Reuters that the upcoming results this week will show how resilient corporate profits have remained in the slowing economy.
“…the coming week will test whether optimism can turn into durable conviction,” Chanana said.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
