Asian stocks surged on Monday as easing trade tensions between China and the United States lifted investor sentiment, while gold and bonds declined ahead of a week packed with major central bank meetings and earnings reports from megacap companies. South Korea's KOSPI, Taiwan's benchmark, and Japan's Nikkei all jumped more than 2 per cent to record highs, while MSCI's Asia-Pacific index rose 1.3 per cent. US and European futures also advanced, with Nasdaq futures up 1 per cent. Top Chinese and US officials agreed on a draft framework for a trade deal expected to be finalised later this week during a meeting between Presidents Xi Jinping and Donald Trump in South Korea. The potential deal would pause planned US tariffs and Chinese export restrictions on rare earths, boosting risk appetite across markets. The Australian dollar strengthened to a two-week high at $0.6541, while Hong Kong's Hang Seng and China's CSI 300 climbed nearly 1 per cent each. Gold fell 1 per cent, and US Treasury yields rose as investors shifted out of safe havens. Attention now turns to central bank decisions in Japan, Canada, Europe, and the United States, where the Federal Reserve is expected to cut rates by 25 basis points. Meanwhile, Wall Street's biggest technology firms—including Apple, Microsoft, Alphabet, Amazon, and Meta—are set to release earnings that will test the durability of corporate profits in a slowing global economy. Attribution: Reuters
