South Korea’s Kospi index surged to a new record high Monday, rising 1.15% to close at 2,736.79. The advance marks the index’s highest close ever, fueled by strong investor sentiment amid ongoing U.S.-China trade talks and anticipation of potential interest rate cuts by the Federal Reserve.
Elsewhere in Asia-Pacific markets, trading was mixed as investors monitored the U.S.-China discussions in Spain and analyzed recent economic data from Beijing. U.S. and Chinese officials began talks in Madrid Sunday to discuss key national security, economic, and trade issues, including the upcoming deadline to divest Chinese short video app TikTok and U.S. tariffs. Delegations led by U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with their counterparts, Chinese Vice Premier He Lifeng and China’s top trade negotiator, Li Chenggang.
Hong Kong’s Hang Seng Index moved up 0.16% at the open, while the Hang Seng Tech index rose 0.27%. China’s CSI 300 index advanced 0.59% in early trade, despite data showing the mainland’s economy slowed in August as retail sales and industrial output missed expectations. Real estate investment continued to contract, slumping 12.9% in the first eight months, according to government data.Australia’s ASX/S&P 200 fell 0.34%. Japanese and Malaysian markets were closed for a holiday.
U.S. equity futures were little changed in early Asian hours as investors brace for a Federal Reserve meeting this week, hoping for interest rate cuts when the meeting concludes Wednesday. On Friday, the Nasdaq Composite closed at a fresh record high, securing its second winning week in a row with a 2% advance. The S&P 500 gained 1.6% week to date,posting its best weekly performance since early August. The Dow posted its first positive week in three after climbing 1% during the period. thes gains followed economic data indicating a weakening labor market and tame inflation, bolstering expectations of fed rate cuts.