Asia Markets Surge Amid Easing Trade Tensions and Leadership Shift

Asian shares rose as optimism for easing U.S.-China trade tensions bolstered risk sentiment. Sanae Takaichi, Japan's first potential female prime minister, is lifting the Nikkei. Signs of resolution, along with projected U.S. Federal Reserve rate cuts, have buoyed global markets, despite recent challenges in U.S. banks.

Asian markets saw a significant rise on Tuesday, driven by the prospect of easing trade tensions between the United States and China. This positive sentiment was bolstered as Sanae Takaichi emerged as Japan's next prime minister, providing a boost to the Nikkei and putting pressure on the yen.

U.S. President Donald Trump expressed optimism over reaching a fair trade deal with Chinese President Xi Jinping. The market is now focused on Trump's upcoming meeting with Xi at an economic conference in South Korea next week, which investors hope will resolve ongoing trade tensions. This lifted investor sentiment across Asia, with MSCI's broad index of Asia-Pacific shares hitting a multi-year high.

In Australia, shares surged as investors targeted rare earths and critical minerals stocks following a supply agreement with the United States. Despite previous concerns over U.S. regional banks' bad loans impacting the markets, investors have remained optimistic, looking forward to significant earnings reports and potential policy easing by the Federal Reserve.

(With inputs from agencies.)