Global Stocks Hit Record Highs on Signs of US-China Trade Breakthrough – Asia Market Wrap

Global stocks extended their record-breaking rally, lifted by optimism that the US and China are nearing a trade agreement — a development that also sparked a surge in copper and crude oil. Treasuries retreated across the curve, while gold slid as demand for traditional havens ebbed.

The MSCI gauge of world equities climbed 0.2% to a fresh all-time high, buoyed by new peaks in Japan, South Korea, and a broader index of Asian shares. S&P 500 and Nasdaq 100 futures advanced after both benchmarks ended last week at record levels. Copper — often viewed as a barometer of global growth — surged, as did oil, on expectations that a US-China accord could strengthen demand. European stock futures also pointed to a stronger open.

The Australian and New Zealand dollars, typically seen as proxies for Chinese exposure, firmed alongside the risk-on mood. As investor confidence improved, gold dropped 0.8% to around $4,080 an ounce, while the 10-year Treasury yield climbed four basis points to 4.04%. Soybean prices rallied on hopes that agricultural trade between Washington and Beijing could soon revive.

After months of uncertainty, the cooling of trade tensions between the world’s two largest economies has reignited appetite for risk and reinforced the powerful equity rally that began after April’s slump. Still, markets face a crucial test this week with the Federal Reserve’s policy decision and a wave of US tech earnings expected to reveal how sustainable corporate profit growth really is.

Top US and Chinese negotiators have reportedly reached consensus on several key sticking points, paving the way for Presidents Donald Trump and Xi Jinping to finalize a deal that could bring relief to global markets. In a sign of optimism, China’s state media urged both sides to “jointly safeguard the hard-won progress” from recent discussions ahead of the high-stakes Trump–Xi meeting.