Asian stocks advanced on Monday as optimism over the US-China trade truce and robust investment in artificial intelligence (AI) lifted risk appetite, while the dollar strengthened to a three-month high amid fading expectations of near-term US rate cuts. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.63 per cent, hovering near a four-and-a-half-year high, with South Korea's Kospi jumping more than 2 per cent and Hong Kong's Hang Seng gaining 1 per cent. China's blue-chip index edged 0.1 per cent higher, while Japanese markets were closed for a holiday. Investor sentiment was buoyed by last week's agreement between Washington and Beijing on a year-long trade truce, although analysts cautioned that optimism may already be priced in. In currency markets, the dollar firmed after hawkish comments from US Federal Reserve officials dampened bets on a December rate cut. The euro slipped to $1.1524, and sterling eased to $1.3142. Meanwhile, attention shifted to corporate earnings, with major tech and AI-related firms including AMD, Qualcomm, and Palantir set to report this week following a mixed round of results from megacap companies. Attribution: Reuters
