Japanese and South Korean stock markets hit new highs, copper and soybeans rise, gold falls

During U.S. President Trump's visit to Asia, the country reached trade agreements with multiple Southeast Asian nations.

The easing of trade tensions has injected optimism into the Asian markets, leading to a rebound in risk assets. Asian stock indices generally rose, with the Nikkei 225 index breaking the 50,000-point mark for the first time in history. The Seoul Composite Index also surpassed 4,000 points for the first time. Samsung Electronics' stock price rose over 2% to a record high.

In the commodities market, Chicago soybean prices increased by 1%, and U.S. copper futures rose over 2%. WTI crude oil rose by 0.6%, while spot gold fell by 1.1%. In the currency market, the Australian dollar rose by 0.3% against the U.S. dollar, and the offshore renminbi rose by 0.1% against the U.S. dollar.

According to People's Daily, on October 25-26 local time, China and the U.S. held a new round of economic and trade consultations in Kuala Lumpur, Malaysia. The topics of this round of consultations were broad, involving U.S. maritime logistics and shipbuilding industry 301 measures against China, extending the suspension period of reciprocal tariffs, fentanyl tariffs and law enforcement cooperation, agricultural product trade, export controls, and other important economic and trade issues of mutual concern, which also affect the stability of the global supply chain. Both sides agreed to further clarify specific details and fulfill their respective domestic approval procedures.

The main asset trends are as follows:

• Australia S&P/ASX 200 index rose by 0.5%.
• The Australian dollar rose by 0.3% against the U.S. dollar to 0.6535. The yen fell by 0.1% against the U.S. dollar to 153.05.
• Bitcoin rose by 1.1% to $114,622. Ether rose by 2.6% to $4,169.84.
• Spot gold fell by 1.1% to $4,066.25 per ounce.

Market Catalyst: Easing Trade Tensions

Despite the positive market sentiment, some analysts remain cautious. Sean Keane, Chief Asia-Pacific Strategist at JB Drax Honore Singapore Pte Ltd, wrote in a client report: "This looks more like a de-escalation rather than the arrival of a new dawn."

Ulrich Urbahn, Head of Multi-Asset Strategy and Research at Bloomberg, stated: "These developments create conditions for increased market volatility, as investors need to weigh central bank policy shifts, geopolitical trade easing, and corporate earnings signals—all of which will impact market direction leading up to the end of the year."

Next Focus: Central Bank Rate Decisions and "Seven Giants" Earnings Reports

Beyond trade news, the market will face multiple tests this week. The Federal Reserve, European Central Bank, and Bank of Japan will successively announce their rate decisions. The market generally predicts that the Federal Reserve will cut rates by 25 basis points, while the European Central Bank and Bank of Japan are expected to maintain their rates.

Additionally, major tech companies such as Apple and Microsoft will announce their earnings reports, and their performance will be a key indicator of corporate health and economic resilience Michael Brown, the senior research strategist at Pepperstone Group Ltd., pointed out in a report: "This week will test the three pillars supporting the bull market in the stock market - easing trade tensions, solid earnings reports, and a loose policy backdrop." He believes that "if we can get through this safely, the market is likely to continue to rise along the path of least resistance and reach new highs before the end of the year."