Asia-Pacific markets trade higher on Monday following a positive conversation between Donald Trump and Chinese leader Xi Jinping ahead of the US President-elect’s inauguration. A surge on Wall Street Friday due to a jump in tech stocks also boosted sentiment. On Sunday, Israel released the first batch of 90 Palestinian prisoners in exchange for the three hostages freed from Gaza, marking the start of a ceasefire after 15 months of war. Japan ( NKY:IND ) rose 1.24% to above 38,800 while the broader Topix Index gained 1% to 2,706 on Monday, recouping losses from last week. The Japanese yen strengthened past 156 per dollar on Monday, extending last week’s gains as investors prepared for the Bank of Japan’s upcoming policy decision. On the data front, Japan’s machinery orders rose 3.4% month-on-month in November, defying market expectations of a 0.4% decline and marking the strongest growth in nine months. China ( SHCOMP ) rose 0.46% above 3,260 and the Shenzhen Component climbing 1.3% to 10,293, the rally extended gains from last week following a positive phone call between Xi Jinping and Donald Trump on Friday, which raised optimism about easing tensions between the two nations. The leaders discussed various topics, including trade, TikTok, and fentanyl. The offshore yuan strengthened to 7.32 per dollar, reaching its highest level in three weeks, as the People's Bank of China kept key lending rates unchanged in January , as expected. Hong Kong ( HSI ) rose 2.57% to 19,916 in early deals on Monday, marking their fifth session of gain. India ( SENSEX ) rose 0.35% to 76,863 during the Monday morning session, reversing losses from the previous session, with strength mainly from the banking and financial services sectors. Australia ( AS51 ) rose 0.45% to close at 8,347 on Monday, building on last week’s momentum. Mining stocks led the rally, supported by rising metals prices. Domestically, attention is turning to Australia’s quarterly inflation report, due next week, as traders look for insights into the future direction of interest rates. The South Korean won rose to around 1,451 per dollar as investors closely monitored President-elect Donald Trump's return to the White House, with his inauguration looming. Investors are now turning their attention to South Korea's upcoming economic releases, including producer inflation figures and advance estimates for Q4 GDP. In the U.S., on Friday, all three major indexes ended higher, fueled by a tech sector rebound and significant gains across major indices. However, trading volumes are anticipated to remain subdued throughout the session, as US markets are closed for the Martin Luther King Jr. holiday. U.S. stock futures declined on Monday as investors braced for a wave of policy announcements n the wake of Donald Trump’s inauguration: Dow +0.02% ; S&P 500 -0.03% ; Nasdaq -0.14% . Key areas of focus will include his stance on tariffs, immigration, taxes, and deregulation. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: People's Bank of China keeps one and five-year loan prime rates unchanged in Jan, as expected China shows strongest GDP growth in over a year Australia's unemployment rate ticks higher to 4% in December Bank of Japan to discuss interest rate hike next week - deputy chief China's trade surplus beats expectations, helped by exports
