Asian markets soar: Nikkei breaks 50,000 barrier on trade optimism

Asian shares surged on Monday, led by a historic rally in Japan where the Nikkei 225 index closed above the 50,000 mark for the first time.

The upbeat mood was fueled by hopes for new trade agreements. During a summit in Southeast Asia, former President Donald Trump reached preliminary trade deals with several nations. Officials from the U.S. and China also signaled that a broader trade deal between the two economic giants is drawing closer, with a framework expected to be discussed at an upcoming meeting.

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Key market movements:

• Japan: The Nikkei 225 jumped 2.1% to a record 50,329.08. The rally was also supported by strong public approval for new Prime Minister Sanae Takaichi’s market-friendly policies.
• South Korea: The Kospi rose 2% to 4,018.73, also a record, on optimism for a trade deal with the U.S.
• Elsewhere: Solid gains were seen in Hong Kong, Shanghai, and Taiwan, with more modest rises in Australia and India.

The positive momentum followed a record-setting Friday on Wall Street, where encouraging inflation data raised hopes for further interest rate cuts from the Federal Reserve.