Japan’s Nikkei 225 Surpasses 45,000 Amid Optimism on US-China Trade Talks

Japan’s Nikkei 225 Surpasses 45,000 Amid Optimism on US-China Trade Talks

Japan’s benchmark Nikkei 225 index climbed past the 45,000 mark for the first time on Monday, leading gains across Asia-Pacific markets. This milestone followed positive comments from U.S. President Donald Trump, who indicated that trade negotiations with China in Spain were progressing well.

Trade Talks and TikTok Divestment

The broader trade discussions were partly overshadowed by an announcement from U.S. Treasury Secretary Scott Bessent regarding a “framework” deal for the divestment of Chinese-owned TikTok. Speaking from Madrid, Bessent stated that the commercial terms of the agreement have been finalized. Both President Trump and Chinese President Xi Jinping are scheduled to discuss these terms further on Friday.

Regional Market Performances

Japan’s Topix index also reached a record high, gaining 0.41% to close at 3,172.33. In South Korea, the Kospi index extended its rally to a second consecutive record high after the government reversed plans to increase the capital gains tax on stock investments. Notable gainers included Kolon Mobility Group, which surged 29.91%, Il Dong Pharmaceutical up 18.16%, and Nongshim, which rose 16.78%. Conversely, South Korea’s small-cap Kosdaq index declined 0.18%.

Australia’s ASX/S&P 200 index advanced 0.26%. However, Hong Kong’s Hang Seng Index reversed earlier gains to close down 0.13%, while China’s mainland CSI 300 index slipped 0.28%.

U.S. Markets Rally Ahead of Federal Reserve Meeting

Overnight in the United States, major stock indices closed higher as investors prepared for a critical Federal Reserve meeting later this week. The S&P 500 rose 0.5% to close above 6,600 for the first time at 6,615.28. The Nasdaq Composite reached a new all-time high, climbing 0.9% to 22,348.75. The Dow Jones Industrial Average posted a modest gain of 49.23 points, or 0.1%, ending at 45,883.45.