Asian Markets Bounce Back as China-U.S. Trade Fears Ease

Asian markets rose Monday after conciliatory comments from Donald Trump over the weekend eased worries about China-U.S. trade tensions, while Tokyo stocks surged to a record high on news of a deal to end political turmoil in Japan, Agence France-Presse (AFP) reported.

Sentiment had taken a hit last week after a fresh flare-up in the trade standoff between Washington and Beijing.

Investors also took heart from data showing China’s economy grew more than expected in the third quarter, with gains building on the positive momentum from Wall Street, where all three major indexes bounced back from Thursday’s losses.

Sentiment had taken a hit last week after a fresh flare-up in the trade standoff between Washington and Beijing, when the U.S. president threatened to impose 100% tariffs in response to China’s latest controls on rare earth exports.

That led to another round of tit-for-tat measures and Trump warning that a planned meeting with Chinese counterpart Xi Jinping next week might not go ahead.

However, tempers appeared to have cooled over the weekend, with both sides agreeing Saturday to hold further trade talks.

Chinese state media said Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent held “candid, in-depth and constructive exchanges” during a call, and that both sides agreed to schedule a new round of negotiations “as soon as possible.”