Asian Stocks Surge Amid U.S.-China Trade Truce and AI Investment Boom

Asian stocks rose due to a U.S.-China trade truce and an AI investment boom. Even as the dollar firmed, investor sentiment remained cautious amid hawkish comments from the Fed. Manufacturing struggles continued in Asia, while tech earnings and a U.S. shutdown loom.

Asian stocks climbed on Monday, fueled by a trade truce between the U.S. and China and burgeoning investment in artificial intelligence, bolstering risk appetite. Meanwhile, the dollar ascended to a three-month peak due to reduced expectations of rate cuts following federal officials' assertive remarks.

The MSCI Asia-Pacific index, excluding Japan, increased by 0.63%, nearing a multi-year high. South Korea's Kospi hit new heights, while European markets indicated a positive start. Despite these gains, concerns linger about the longevity of the U.S.-China trade agreement.

Manufacturing figures in Asia remained tepid amid persistent tariffs and dwindling U.S. demand. As attention shifts to upcoming corporate earnings, particularly in the tech sector, the impact of heavy investments in AI infrastructure comes under scrutiny. Additionally, oil prices edged up after OPEC+'s decision to maintain production levels.

(With inputs from agencies.)