**Asian Shares Rally as U.S. Futures Jump; Japan’s Nikkei 225 Tops 50,000 for the First Time**
*BANGKOK (AP)* — Asian shares surged and U.S. futures climbed on Monday, buoyed by strong performances from Japan’s benchmark Nikkei 225, which surpassed the 50,000 mark for the first time in history. Positive developments in trade relations between the U.S., China, and other major trading partners contributed to the upbeat market sentiment.
U.S. President Donald Trump visited Malaysia for a summit with Southeast Asian nations, where he reached preliminary trade agreements with Malaysia, Thailand, Cambodia, and Vietnam. Meanwhile, a trade deal between the United States and China appeared closer to fruition. Officials from both of the world’s largest economies announced on Sunday that they had reached an initial consensus, setting the stage for Trump and Chinese leader Xi Jinping to work toward finalizing the deal during a high-stakes meeting later in the week.
“This isn’t just photo-op diplomacy. Behind the showmanship, Washington and Beijing’s top trade lieutenants have quietly mapped out a framework that might, just might, keep the world’s two largest economies from tearing up the field again,” said Stephen Innes of SPI Asset Management in a commentary.
Following Malaysia, Trump was scheduled to visit Japan before concluding his Asian tour in South Korea, where he is expected to meet Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum.
A report released Monday by the APEC secretariat forecast that annual growth in the Pacific region will slow to 3% this year from 3.6% last year, partly due to trade restrictions and higher tariffs.
### Japan’s Market Rally
In Japan, newly installed Prime Minister Sanae Takaichi enjoys high levels of public support for her market-friendly policies. The Nikkei 225 index climbed 2.1% to 50,329.08, hitting record intraday highs. Takaichi, Japan’s first female prime minister, favors raising defense spending, boosting stocks of major defense contractors such as Kawasaki Heavy Industries, which rose 8.7%. Other defense-related companies also gained, with IHI Corp. up 2.6% and Hitachi increasing 2.7%.
Trump has frequently criticized Japan for restricting access to its auto market, citing it as one justification for imposing tariffs of 25%—later reduced to 15%—on Japan, one of America’s most vital Asian allies. In response, the Japanese government has proposed purchasing a fleet of Ford F-150 trucks for inspecting roads and infrastructure, signaling openness to U.S. products.
### Gains Across Asia-Pacific Markets
South Korea saw shares surge as well, with the Kospi rising 2% to a record 4,018.73. Investors are optimistic about a possible trade agreement with the United States. Chinese markets also posted solid gains: Hong Kong’s Hang Seng increased by 1% to 26,427.34, and the Shanghai Composite rose 1% to 3,991.35.
In Australia, the S&P/ASX 200 picked up 0.3% to 9,047.40, while Taiwan’s Taiex gained 2.1%, and India’s Sensex was up 0.5%.
### U.S. Stocks Hit Records
On Friday, U.S. stocks reached record highs after inflation data proved less severe than anticipated. The S&P 500 rose 0.8% to 6,791.69, surpassing its previous all-time high set earlier this month. The Dow Jones Industrial Average rallied 1% to 47,207.12, and the Nasdaq composite climbed 1.1% to a record 23,204.87.
The encouraging inflation figures suggest less financial strain for lower- and middle-income households grappling with high price increases. More importantly for Wall Street, the data may clear the way for the Federal Reserve to continue cutting interest rates to support a slowing job market.
The Fed cut its main interest rate last month for the first time this year but has so far been cautious about additional cuts due to concerns that lower rates might exacerbate inflation.
Most large U.S. companies reported stronger-than-expected profits last quarter, further raising hopes for steady economic growth.
### Commodities and Currency Movements
Early Monday trading saw U.S. benchmark crude oil rise 15 cents to $61.65 per barrel, while Brent crude, the international standard, increased 12 cents to $65.32 per barrel. The U.S. dollar strengthened against the Japanese yen to 153.15 from 152.85 yen. Conversely, the euro slipped to $1.1622 from $1.1636.
https://wtop.com/world/2025/10/asian-shares-gain-japans-nikkei-tops-50000-level-as-trump-seeks-trade-deals/