Asian shares, U.S. futures advance after China-U.S. trade talks

HONG KONG — Asian shares advanced Monday after two days of trade talks between China and the U.S. made what the U.S. side said was “ substantial progress.”

U.S. futures and oil prices also advanced.

Officials said a joint statement would be issued later Monday following the trade talks in Geneva over the weekend. Investors are also watching for developments in other flashpoints including clashes between India and Pakistan, the war in Ukraine and conflict in the Middle East.

The Sensex in Mumbai jumped about 2.9% after India and Pakistan agreed to a truce after talks to defuse their most serious military confrontation in decades. The two armies have exchanged gunfire, artillery strikes, missiles and drones that killed dozens of people.

Pakistan's KSE 100 surged more than 9% and trading was halted for one hour following a spike driven by the ceasefire and an International Monetary Fund decision Friday to disburse about $1 billion of a bailout package for its battered economy.

In Hong Kong, the Hang Seng gained 1.3% to 23,155.18, while the Shanghai Composite Index picked up 0.7% to 3,366.15.

Chinese EV battery maker CATL, or Contemporary Amperex Technology Co., Ltd., said in a prospectus filed with the Hong Kong Stock Exchange that it plans to raise nearly $4 billion in a share listing.

U.S. Treasury Secretary Scott Bessent said there was “substantial progress” in the weekend trade talks but offered scant information on exactly what the negotiations entailed.

Separarely, Chinese Vice Premier He Lifeng said both sides had agreed to “establishing a consultation mechanism” for further discussions on trade and economic issues.

Elsewhere in Asia, Japan's Nikkei 225 added 0.4% to 37,644.26 while the Kospi in Seoul gained 0.9% to 2599.84.

Australia's S&P/ASX 200 climbed less than 0.1% to 8,233.50.

Taiwan's Taiex gained 1%.

On Friday, U.S. stocks drifted, with the S&P 500 edging 0.1% lower to 5,659.91. It finished the week with a modest dip of 0.5%. It was the first week in seven where the index at the heart of many 401(k) accounts moved by less than 1.5%, after careening on fears about President Donald Trump’s trade war and hopes that he’ll relent on some of his tariffs.

The Dow Jones Industrial Average dipped 0.3% to 41,249.38, while the Nasdaq composite edged up by less than 0.1% to 17,928.92.

Apart from trade talks and other geopolitical factors, the flow of earnings reports for the start of the year from companies is slowing but still moving markets.

In other dealings early Monday, U.S. benchmark crude oil gained 84 cents to $61.86 per barrel.

Brent crude, the international standard, added 95 cents to $64.86 per barrel.

The U.S. dollar advanced to 146.63 Japanese yen from 146.17 yen. The euro edged lower, to $1.1193 from $1.1209.

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