Asian shares climbed after a conversation between Donald Trump and Xi Jinping raised hopes for easing US-China tensions.
Equities advanced in regional markets from Australia to Japan and China. A gauge of major Chinese firms listed in Hong Kong rose as much as 2.6%, after Trump described the pre-inauguration talk between the two leaders as “very good.”
European futures edged higher while US contracts were marginally lower, with Wall Street closed on Monday for a holiday.
A gauge of the dollar slipped, extending last week’s decline after snapping a six-week rally. The stronger appetite for risk assets came after Trump and Xi discussed trade, TikTok and fentanyl, which may set the tone for relations in the early days of the new administration.
Adding to the brighter mood, TikTok started restoring service in the US on Sunday as Trump said he would halt enforcement of a law requiring the app’s Chinese owner to find a buyer for three months.
Whether the momentum can continue hinges on how quickly Trump will implement his policies ranging from lower taxes to higher tariffs and tighter immigration control, the inflationary impact of which may keep the dollar strong and Treasury yields elevated.
