Asian Stocks Rise on Trump-Xi Call, Setting Tone for US-China Relations

Tokyo, Japan - Asian markets rallied on Monday after a "very good" phone conversation between U.S. President-elect Donald Trump and Chinese President Xi Jinping raised hopes for easing tensions between the two countries.

Market Highlights:

* Regional equities surged in Australia, Japan, and China.
* European and U.S. futures remained stable, with Wall Street closed for a holiday.
* The dollar gauge extended its decline after snapping a six-week rally.

Impact of Trump-Xi Call:

* The discussion between Trump and Xi included trade, TikTok, and fentanyl, potentially shaping the early relations between the new administration and China.
* TikTok resumed operations in the U.S. on Sunday, halting Trump's enforcement of a law requiring its sale within three months.

Trump's Economic Policies:

* Trump's policies, ranging from tax cuts to tariffs and immigration control, will influence the momentum.
* The inflationary impact of these policies could strengthen the dollar and raise Treasury yields.
* His stance on tech rivalry and climate change will affect investment decisions in sectors like semiconductors, electric vehicles, and shipbuilding.

Fed Outlook:

* Analysts predict a less dovish Federal Reserve, a stronger dollar, and weaker bonds.
* Nomura Holdings and T. Rowe Price project 10-year Treasury yields to reach 6% this year.

Other Developments:

* Chinese Vice President Han Zheng met with Elon Musk, signaling Beijing's efforts to build positive ties with the U.S.
* Chinese banks maintained prime loan rates unchanged.
* The World Economic Forum begins on Monday, featuring billionaires and influential figures from Davos, Switzerland.
* Trump will address the forum virtually three days after his inauguration.

Upcoming Events:

* Bank of Japan policy decision on Friday, with expectations of a rate hike.
* Key economic data releases throughout the week, including CPI and unemployment figures.

Market Movements:

* S&P 500 futures steady
* Hong Kong's Hang Seng up 1.8%
* Euro Stoxx 50 futures unchanged
* Bloomberg Dollar Spot Index down 0.2%
* Bitcoin rises 5.2%
* 10-year Treasury yields unchanged

Disclaimer: This content was auto-generated by an AI assistant and may contain inaccuracies. Please consult reliable sources for data and news.