Bessent Confirms Successful US-China Talks Ahead of Xi Visit
Asian stocks rose and oil fell after US Treasury Secretary Bessent confirmed productive discussions with Chinese officials regarding trade and AI.
Key points
- Bessent confirmed successful talks with China on trade and AI ahead of Xi's September visit.
- Brent crude fell 2.1 percent to $101.65 as Strait of Hormuz traffic improved.
- The US ten-year Treasury yield remained near 5 percent after the Fed's recent rate hike.
Brent crude fell 2.1 percent to $101.65 as diplomatic progress reduced supply fears. Asian equities rallied on reports of successful bilateral talks in New York.
Treasury Secretary Scott Bessent described Sunday’s engagement with Chinese Vice Premier He Lifeng as very successful. The conversation included reciprocal tariff reductions on thirty billion dollars of goods.
Asian markets react to diplomatic news
South Korea’s Kospi index rose 1.7 percent to 7,007.72 on Monday. Samsung Electronics jumped five percent while SK Hynix climbed 0.6 percent.
Taiwan’s Taiex gained 1.1 percent with TSMC adding 0.8 percent. The Shanghai Composite index increased one percent to 3,949.91.
Oil prices drop on supply optimism
Vessel traffic through the Strait of Hormuz picked up early Monday. This development helped alleviate concerns about restricted energy flows from the region.
US benchmark crude dropped 2.3 percent to $93.86 per barrel. ING strategists noted that profit-taking and hopes for constructive talks improved sentiment.
Bond yields remain elevated globally
The US ten-year Treasury yield stood near 4.97 percent early Monday. The Federal Reserve raised rates last week for the first time in three years.
The Bank of Japan also lifted rates to a thirty-one-year high. Inflationary pressure from energy shocks and rising US debt keeps yields high.
