Business · Malaysia Bureau
Tech surge lifts Asian markets as Trump-Xi meeting looms
Asian stock markets rallied on technology sector strength while the dollar firmed amid expectations of further interest rate increases. Investors are closely monitoring this week's high-level meeting between US and Chinese leaders for signals on trade relations.
LSN Malaysia ·
Technology stocks led gains across Asian bourses, providing momentum to regional indices as market participants assessed the outlook for monetary policy tightening. The strength in tech equities offset broader caution in other sectors, with investors rotating into growth-oriented shares amid shifting rate expectations.
The US dollar extended its gains against regional currencies as traders wagered on the Federal Reserve maintaining its hawkish stance on interest rates. The currency's resilience reflected persistent inflation concerns and the likelihood of higher-for-longer policy rates in the world's largest economy.
Market attention is now focused on a significant bilateral meeting between US President Donald Trump and Chinese leader Xi Jinping scheduled for this week. The high-stakes engagement is being closely watched by investors seeking clarity on whether the two powers can arrest the deterioration in their relationship and prevent further escalation of trade tensions.
Analysts noted that the outcome of the Trump-Xi talks could have substantial implications for regional economies dependent on US-China trade flows. A constructive dialogue could ease market uncertainties, while any further deterioration in ties risks triggering volatility across Asian financial markets in the coming sessions.