Bessent Praises US-China Talks as Asian Stocks Rally
Treasury Secretary Bessent called US-China talks successful, prompting a rise in Asian tech stocks and a drop in oil prices.
Key points
- Bessent stated that US and China achieved a very successful engagement regarding trade and AI.
- Samsung Electronics shares surged 5% as the Kospi index rose 1.8% to 7,018.98.
- Brent crude oil prices decreased by 2.1% to $101.67 per barrel.
Treasury Secretary Scott Bessent declared the recent US-China negotiations successful. Asian equity markets responded with broad gains on Monday. Investors anticipate a high-level meeting between President Trump and President Xi this week.
Asian Equity Markets Rise
South Korea’s Kospi index climbed 1.8% to reach 7,018.98. Samsung Electronics shares jumped 5% while SK Hynix added 1%. Taiwan’s Taiex index rose 1.1% with TSMC gaining 0.6%.
Hong Kong’s Heng Seng advanced 0.6% to close at 24,891.58. The Shanghai Composite also gained 0.6% to 3,933.37. India’s Sensex index recorded a 0.6% increase as well.
Oil Prices Decline Amid Tensions
Brent crude prices fell 2.1% to $101.67 per barrel. Vessel traffic through the Strait of Hormuz increased slightly. This movement occurred despite the strait remaining largely closed and regional tensions persisting.
US benchmark crude dropped 2.2% to settle at $93.99 per barrel. These levels remain significantly higher than the $72 price in late February. The rise follows the start of the war in Iran.
Bond Yields and Currency Moves
The yield on the US 10-year Treasury hit 5%. The Federal Reserve raised rates for the first time in three years last week. The Bank of Japan also lifted rates to a 31-year high.
The US dollar strengthened to 157.02 Japanese yen from 156.81. The euro weakened slightly to $1.1476 from $1.1483. These shifts reflect ongoing inflationary pressures and debt concerns.
