Bangkok, Oct 27 (AP) Asian markets surged on Monday, driven by Japan's Nikkei 225 surpassing the 50,000 mark for the first time. Positive developments in trade negotiations were a major factor in buoying investor sentiment. US President Donald Trump's visit to Malaysia for a summit with Southeast Asian leaders saw preliminary trade agreements reached with Malaysia, Thailand, Cambodia, and Vietnam, easing some tensions. A potential trade accord between the United States and China was also reported as nearing completion, with both nations working towards a consensus for Trump and Chinese leader Xi Jinping to finalize during an upcoming high-level meeting. Stephen Innes of SPI Asset Management indicated that substantive diplomatic efforts are underway to prevent further economic discord. As part of Trump's Asian itinerary, he is scheduled to travel next to Japan, and subsequently South Korea, where a side meeting with Xi is anticipated during the Asia-Pacific Economic Cooperation (APEC) forum. Amid these diplomatic efforts, however, a recent APEC report forecasted a slowdown in the region's annual growth, with trade restrictions cited as a contributing factor. In Japan, the newly appointed Prime Minister Sanae Takaichi, noted for her market-oriented policies, is receiving positive public support, which has helped boost the Nikkei 225 by 2.1% to 50,329.08. Takaichi's advocacy for increased defense spending further propelled defense-related stocks like Kawasaki Heavy Industries, which soared 8.7%. Trump's ongoing criticism of Japan's car market policies led to discussions about Japan purchasing Ford F-150 vehicles. In South Korea, optimism for a trade pact with Trump invigorated the Kospi, resulting in a 2% rise to a record 4,018.73. Other regional markets also recorded gains, with Hong Kong's Hang Seng increasing by 1% to 26,427.34 and the Shanghai Composite climbing 1% to 3,991.35. Australia's S&P/ASX 200 edged up 0.3% to 9,047.40. Taiwan's Taiex and India's Sensex advanced 2.1% and 0.5%, respectively. Meanwhile, Wall Street hit record highs last Friday, driven by better-than-anticipated inflation data, which might ease burdens on households and potentially allow the Federal Reserve to cut interest rates to invigorate the sluggish job market. The Fed's recent rate cuts aim to stimulate economic growth without exacerbating inflation. Corporate earnings also exceeded expectations, fueling optimism for stable growth. On the commodity front, US crude oil prices increased slightly to USD 61.65 per barrel, while Brent crude rose to USD 65.32. The US dollar strengthened against the Japanese yen but slightly weakened against the euro. (AP)
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