Hong Kong, 27 October 2025— Global stock markets started the week on a strong note, lifted by growing optimism that the United States and China could extend their trade truce. The possibility of a continued agreement between the world’s two largest economies encouraged investors and fueled gains across Asia, Europe, and the United States.
Asian markets led the rally. Japan’s Nikkei 225 jumped 2.5 percent, breaking through 50,000 points for the first time, a symbolic milestone that reflects renewed investor confidence. South Korea’s Kospi rose 2.9 percent to reach a record high, while China’s CSI 300 added 1.2 percent and Hong Kong’s Hang Seng advanced 1.1 percent. Analysts said investors were encouraged by signs that trade talks between Washington and Beijing could bring stability to global supply chains, a positive development after months of uncertainty.
The upbeat sentiment extended to the U.S., where futures for the S&P 500 and Nasdaq Composite climbed 0.9 percent and 1.3 percent respectively. Those gains put Wall Street on track for fresh record highs as markets await a busy week of major corporate earnings and a Federal Reserve decision on interest rates. Lower-than-expected inflation data from last week strengthened expectations that the Fed could announce another rate cut, which would provide further support for stocks and economic growth.
Optimism around trade also influenced commodities and digital assets. Copper futures rose 0.9 percent as investors bet on improving global demand, while gold prices slipped 2 percent to around $4,027 per ounce as demand for safe-haven assets weakened. Bitcoin extended its recent rally, rising 1.7 percent to about $115,000, helped by improving investor confidence.
The potential for a renewed trade truce also boosted technology shares, which have been driving this year’s global market rally. Many large U.S. tech companies are set to report earnings this week, and easing tensions between the U.S. and China could benefit semiconductor and artificial intelligence businesses that depend on global trade. Shares of Nvidia rose 2.5 percent in pre-market trading, supported by hopes that cross-border chip sales will remain strong. Analysts said continued cooperation between the two countries would help sustain the AI and technology boom that has powered much of the stock market’s growth in 2025.
In Japan, investor optimism was also strengthened by expectations of new economic measures from Prime Minister Sanae Takaichi, who has outlined plans to promote growth and increase investment. Analysts said foreign investors have played a major role in pushing Japan’s market higher. Some strategists believe that if the current momentum continues, the Nikkei could reach 60,000 points by next summer. Others noted that the recent surge marks Japan strongest rally in a decade and reflects a growing sense of opportunity among global investors.
Globally, markets are being supported by easing inflation, resilient corporate profits, and the expectation that central banks will continue to support growth. Analysts say the rare combination of monetary easing and steady economic activity is encouraging investors to stay positive, even as risks remain. Some warn that valuations in major markets are high and that any setback in trade negotiations could trigger volatility.
For now, however, confidence appears to be winning. Strong earnings, improving trade relations, and signs of stable economic growth have given investors reasons to stay optimistic. If these trends continue, 2025 could see global markets extend one of their most powerful rallies in recent years.
