Stocks in Asia and the European Union surged Monday, with the United States and People's Republic of China set to sign the long-awaited first phase of their trade deal later this week. U.S. futures too pointed toward a higher open.
China's Liu Arrives In US Monday
President Donald Trump is expected to sign the trade deal with Chinese Vice Premier Liu He on Wednesday. Liu, who led the trade deal negotiations from the Chinese side, will arrive in the U.S. later Monday for a three-day visit, Reuters reported.
The exact details of the trade deal haven't been made public, and investors have acted mainly on speculation over how favorable the terms of the agreement will be and when it will be signed.
The tensions between the U.S. and Iran following the killing of Iranian major general Qassem Soleimani have also de-escalated.
With Iran admitting that it accidentally shot down a Boeing 737 aircraft last week, killing all 176 people on board, the government's problems have shifted domestically, with major protests across the country, according to Reuters.
The conflict between the two countries, which seemed headed for war last week, caused a worldwide dip in the stock markets.
The ease in the conflict and the optimism over the U.S.-China trade deal seems to have given a sigh of relief to traders.
Here's how the markets in Asia closed on Monday:
China's Shanghai Composite closed 0.75% higher at 3,115.57, and Shenzhen Component closed 1.36% higher at 1,822.35.
Hong Kong's Hang Seng Index was up 1.11% at 28.954.94, as the city's chief executive Carrie Lam said that the city-state's financial systems "have not been undermined" by the recent political unrest and geopolitical conflicts.
South Korea's KOSPI traded 1.04% higher to close at 2,229.26.
India's Nifty 50 was up 0.59% at 12,329.55 and SENSEX closed 0.62% higher.
Australia's S&P/ASX 200 index traded 0.37% lower at 6,903.7. Singapore's Straits Times Index was down 0.15% at 3,251.07.
Markets in Japan were closed for a holiday.
The United Kingdom's FTSE 100 was up 0.5% at 7,625.55.
Germany's DAX Performance Index traded 0.09% higher at 13,495.43.
France's CAC 40 was up 0.31% at 6,055.56.
The Eurozone's overall Stoxx 50 index was up 0.11%
NASDAQ 100 futures were up 0.51% at 9,024.25. Dow Jones futures traded 0.42% higher at 28,897. S&P 500 futures were up 0.38% at 3,277.25.