Asian Shares Mostly Higher On Trade Deal Optimism

(RTTNews) - Asian stocks ended mostly higher on Monday as hopes of Fed rate cuts as well as easing tensions in the Middle East helped boost investors' appetite for riskier assets.

With a July 9 deadline looming, traders also assessed the likely impact of U.S. President Donald Trump's trade war on the world's largest economy.

The U.S. dollar stayed under pressure in Asian trade and gold edged up toward $3,300 per ounce while oil prices dipped as investors braced for more OPEC+ supply.

China's Shanghai Composite index rose 0.59 percent to 3,444.43 on renewed hopes for a U.S.-China trade deal.

Hong Kong's Hang Seng index dropped 0.87 percent to 24,072.28 as new data showed China's manufacturing activity contracted for a third straight month in June amid weak demand. A measure of non-manufacturing activity increased in the month, offering some respite.

Japanese markets ended at over 11-month highs due to investor optimism over ongoing trade negotiations. Investors shrugged off data that showed Japan's industrial production rose less than expected in May.

The Nikkei average jumped 0.84 percent to 40,487.39, marking its highest closing level since July 17. The broader Topix index settled 0.43 percent higher at 2,852.84.

Tech stocks topped the gainers list, with start-up investor SoftBank Group shares surging 4.3 percent. Automakers Honda Motor and Toyota Motor fell 1-2 percent after U.S. President Trump accused Japan of engaging in "unfair" automobile trade with the United States.

Seoul stocks snapped a two-day losing streak as investors looked to developments in tariff negotiations between South Korea and the United States. The Kospi average ended up 0.52 percent at 3,071.70, led by gains in chemical shares.

Australian markets eked out modest gains as healthcare stocks rebounded from a six-week low. Lower iron ore prices weighed on the mining sector, limiting overall gains. The benchmark S&P/ASX 200 edged up by 0.33 percent to 8,542.30 while the broader All Ordinaries index ended up 0.34 percent at 8,773.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index inched up by 0.15 percent to 12,602.82 on optimism over global trade negotiations.

U.S. stocks advanced on Friday after a White House official said the U.S. had signed a finalized trade framework with China under the Geneva deal.

Cooling tensions in the Middle East and favorable inflation and consumer sentiment reports also fueled hopes for more Fed rate cuts.

The S&P 500 and the tech-heavy Nasdaq Composite both rose about half a percent to close at new record closing highs, led by continued gains in AI-related stocks. The narrower Dow gained 1 percent.