Asia stocks climb, tech shares lead gains ahead of Trump-Xi summit

Asian stocks experienced a rise on Monday, as technology shares led the gains, according to a report by Investing.com. The optimism was fueled by positive signals from ongoing U.S.-China trade talks, which took place ahead of a summit between U.S. President Donald Trump and Chinese President Xi Jinping. Regional markets also mirrored Wall Street's index futures rise during Asian hours.

South Korea's KOSPI increased by 1.7%, with Samsung Electronics and SK Hynix also rising in value. China's Shanghai Shenzhen CSI 300 gained around 0.5%, while the Shanghai Composite index saw a 0.6% increase. Hong Kong's Hang Seng index also climbed by 0.6%. The regional markets were buoyed by optimism over the U.S.-China discussions, with investors cautious about a meeting between the two leaders.

Positive weekend talks between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, held in New York, showed some progress in trade and AI dialogue. The talks concluded with both sides agreeing to establish an AI dialogue before the Trump-Xi meeting. Japan's markets were shut for a public holiday, limiting trading volumes in the region.

Australia's S&P/ASX 200 traded flat, with energy and metals shares dragging the index down. Singapore's Straits Times Index rose by 0.3%, while India's Nifty 50 also edged up by 0.3%. Oil prices declined for the fourth consecutive day, easing some pressure on Asian equities. However, oil prices remained high due to ongoing conflicts between the United States and Iran, adding inflation and geopolitical risks.

Investors were also monitoring bond yields as expectations of further U.S. Federal Reserve rate hikes pushed Treasury yields higher.