Asian stocks were mostly higher on Monday, with Japan’s Nikkei posting a new record high, as investors awaited talks between US President Donald Trump, Ukrainian President Volodymyr Zelensky, and European leaders in Washington. The meeting comes after Trump’s summit with Russian President Vladimir Putin in Alaska on Friday, which failed to yield a breakthrough on a ceasefire in Ukraine. Despite this, Zelensky described a US offer of security guarantees to Ukraine as “historic”.
The Nikkei index rose 0.8% to 43,714.31, building on Friday’s gains after better-than-expected economic growth data. Other Asian markets also saw gains, with Hong Kong’s Hang Seng Index up 0.2% and Shanghai’s Composite index rising 0.9%. However, Seoul and Jakarta fell back, while Taipei’s index dipped slightly. In Europe, London’s FTSE 100 saw early gains, while Paris and Frankfurt fell slightly at the open.
Thailand’s economy grew 2.8% in the second quarter, driven by strong exports ahead of US tariffs taking full effect. However, the National Economic and Social Development Council forecast overall growth for 2025 to fall between 1.8% and 2.3%, below the 2.5% seen in 2024, citing the likely impact of US tariffs. This mixed economic data has investors watching for clues on US interest rates at the Federal Reserve’s annual retreat at Jackson Hole.
Oil prices, which have been volatile due to Russia’s major crude production, were up on Monday after a drop on Friday. West Texas Intermediate rose 0.6% to $63.19 per barrel, while Brent North Sea Crude climbed 0.5% to $66.16 per barrel. Stephen Innes at SPI Asset Management noted that Trump and Putin’s meeting offered “theatre” but no real progress on a ceasefire, with Trump quietly holstering his threat of tariffs on Beijing for buying Russian barrels and sanctions on Moscow’s crude.
This week, investors will be closely watching the Federal Reserve’s annual retreat at Jackson Hole for any hints on US interest rates. With mixed economic data and ongoing trade tensions, investors are cautious but optimistic about the potential for breakthroughs in trade talks.
