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Stock markets in Asia have risen led by technology shares, lifted by optimism around talks between the US and China on trade and artificial intelligence, while oil prices declined.
The talks between US and Chinese economic officials on Sunday came ahead of much anticipated summit on Thursday between US president Donald Trump and Chinese president Xi Jinping in Washington.
US Treasury secretary Scott Bessent said the two countries had discussed setting up a channel to communicate about AI issues called the “US-China AI dialogue”.
Chinese state media described the talks as “candid, in-depth and constructive”.
Nvidia ’s co-founder and chief executive Jensen Huang has rejected warnings from AI researchers that the technology could lead to humanity’s extinction within a few years, calling this overblown “doomsday narratives”. He told CBS News:
2030 is not going to be the end of the world. There is 0% chance that’s going to be the end of the world.
Scaring people is unnecessary. It is irresponsible.
Hong Kong’s Hang Seng gained 0.88%, South-Korea’s tech-heavy Kospi jumped 2% and China’s CSI 300 rose 0.6%. Tokyo was closed for the silver week holiday, which runs until Wednesday.
Stephen Innes, analyst at Quintex Intel, said:
Scott Bessent and Chinese vice premier He Lifeng have already laid the groundwork [for the Trump-Xi meeting] in New York, with trade, investment and artificial intelligence on the table, but this is not a market waiting for a grand bargain.
It is waiting to see whether both sides can keep the next trade grenade in the drawer.
Oil prices are down this morning, adding to Friday’s declines on hopes that Saudi Arabia is trying to restore about half of shipments within days after they were disrupted by the stoppage of its east-west pipeline to the Red Sea.
Brent crude, the global oil benchmark, fell just over 2% to $101.8 a barrel, a drop of $2.01. But it remains above $100 and higher than pre-Iran war levels of around $72 a barrel.
There was relief that the bombing threatened by Trump has not happened (yet). Governments across the Middle East are bracing for an escalation of violence after Iran said it had received intelligence that the US was preparing for a renewed bombing campaign against the Islamic Republic.
The US president reportedly told a Fox News reporter “very big things are going to be happening in the not-so-distant future” and that the options he was considering were “wiping Iran out, letting them rot economically or making a deal”.
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