Market participants across Asia demonstrated optimism at the start of the trading week,solana chart with regional benchmarks advancing in anticipation of high-stakes economic negotiations between global superpowers.
Japan's benchmark Nikkei 225 index climbed 1.1% to settle at 38,137.09, overcoming disappointing GDP figures showing a 0.2% contraction during the first quarter. South Korea's Kospi outperformed with a 1.9% surge to 2,865.52 as technology shares led the charge.
Chinese equities demonstrated resilience despite concerning trade statistics, with May exports expanding at a slower 4.8% annual pace compared to April's 8% growth. Particularly noteworthy was the nearly 10% year-on-year decline in shipments to American markets. The persistent deflationary trend continued as consumer prices dipped 0.1% in May, marking four consecutive months of negative readings.
Hong Kong's Hang Seng Index gained 1.4% to close at 24,119.64, while mainland China's Shanghai Composite edged up 0.4% to 3,397.13. Australian financial markets remained shuttered for a national holiday.
Global Economic Outlook Remains Cautious
The Organization for Economic Cooperation and Development recently revised its 2025 growth projection for the United States downward to 1.6%, significantly below last year's 2.8% expansion.
Currency markets witnessed the dollar softening against major counterparts as traders balanced Friday's encouraging employment data against geopolitical uncertainties surrounding the London negotiations. The U.S. delegation will include Treasury Secretary Scott Bessent alongside Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, while China's Vice Premier He Lifeng is expected to represent Beijing's interests.
Following Friday's economic releases, the dollar index trimmed its weekly losses by more than half, though the greenback remains down 8.6% year-to-date. The Japanese yen strengthened 0.31% to 144.425 against the dollar following better-than-expected economic contraction figures and monetary policy commentary from Prime Minister Shigeru Ishiba.
European currencies showed modest gains, with the euro advancing 0.18% to $1.1417 amid expectations of tighter monetary policy from the European Central Bank. The Swiss franc appreciated 0.17% to 0.8209 per dollar, while sterling added 0.27% to $1.3555.
Energy Markets Await Trade Developments
Crude oil prices maintained their upward trajectory from the previous week as market participants awaited signals from the bilateral discussions. Brent crude futures held steady at $66.47 per barrel, with U.S. West Texas Intermediate crude ticking up marginally to $64.59.
Industry observers noted that optimism surrounding potential trade agreements between the world's largest economies offset concerns about increased production from OPEC+ nations. The cartel recently approved substantial output hikes scheduled for July implementation.
Analysts cautioned that accelerated production increases from OPEC+ members could create downward pressure on energy prices in coming months. HSBC's research team highlighted potential risks to their $65 per barrel Brent forecast for late 2025, while Capital Economics analysts suggested the organization's faster production ramp-up may represent a lasting strategic shift.
Separately, reports indicated Japan's chief trade negotiator Ryosei Akazawa plans additional discussions in Washington, underscoring the complex web of international trade negotiations currently underway.
