Asia stocks rally on hopes for Ukraine ceasefire; Japan hits record highs

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Asia shares mostly rise on Monday as investors focused on a key meeting in Washington between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy aimed at advancing a peace deal with Russia. Meanwhile, Chinese and Indian markets outperformed the region, driven by hopes that a quick resolution to the conflict would ease U.S. scrutiny over their purchases of Russian oil.

Meanwhile, traders also looked ahead to Federal Reserve Chair Jerome Powell’s speech at Jackson Hole for US policy clues that could influence global yields, and to a high-level US-Russia meeting that could sway risk sentiment.

Bitcoin dropped to around $115,000, extending last week’s retreat from record highs, as profit-taking and fading expectations for US rate cuts weighed on sentiment.

Gold prices rose to around $3,350 per ounce on Monday after touching a more than two-week low earlier in the session.

Silver climbed above $38 per ounce on Monday, recouping some losses from last week, as investors turned their attention to a key meeting in Washington between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy amid efforts to reach a peace deal with Russia.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) rose 0.89% to above 43,500, while the Topix Index gained 0.5% to 3,122 on Monday, with both benchmarks reaching new all-time highs on the back of solid economic and corporate results. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] weakened to around 147.5 per dollar on Monday.

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) rose 0.97% to above 3,700 on Monday, while the Shenzhen Component jumped 1.3% to 11,785, with the former nearing its highest level since 2015 amid strong buying momentum from both institutional and retail investors, and the offshore yuan [https://seekingalpha.com/symbol/USD:CNY#source=url_first_level%3Amarket-news%7Csection%3Aglobal%7Csection_asset%3Afull_story%7Cbutton%3Abody_link] held steady to around 7.19 per dollar on Monday, halting two consecutive sessions of losses to start the week on a muted note, as investors assessed the People’s Bank of China’s daily midpoint fix.

The People’s Bank of China reaffirmed its commitment to “thoroughly” implement a “moderately loose” monetary policy, emphasizing selective support for the economy, according to its quarterly report released last Friday.

Investors now await the People’s Bank of China’s policy decision this week, with loan prime rates expected to remain unchanged.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) rose 0.57% to 25,341 in Monday’s morning session, ending a three-day losing streak.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) rose 1.19% to 81,627 in morning trade on Monday, marking its third consecutive session of gains and reaching its highest level since July 24.

India has proposed lowering the Goods and Services Tax on small cars to 18% from the current 28% as part of sweeping consumption tax cuts, a government source told Reuters on Monday.

Talks on a proposed U.S.-India trade deal have been delayed after a planned visit by American negotiators to New Delhi on August 25–29 was called off, Reuters reported.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) rose 0.22% edged up by 0.1% to a new record high of 8,944 on Monday, as investors digested a wave of corporate earnings and looked ahead to more major reports later in the week. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] rose to around $0.651 on Monday, as markets navigated a relatively quiet week for domestic economic data.

Investor attention is now shifting toward the Westpac Consumer Confidence Index, consumer inflation expectations, flash PMIs, and speeches from RBA officials scheduled for this week.

In the U.S., on Friday, all three major indexes ended mixed [https://seekingalpha.com/news/4486157-wall-street-is-mixed-as-investors-await-trump-putin-summit-in-alaska] on Friday as investors digested economic data, corporate news, and geopolitical developments.

The Trump administration has expanded its 50% tariffs on steel and aluminum imports to cover hundreds of additional products. The expanded levies take effect today, August 18. President Trump told reporters he planned further announcements on steel tariffs, as well as new levies targeting semiconductor imports.

U.S. stock futures rise on Monday after Wall Street closed mostly lower Friday but still posted a second weekly gain: Dow +0.12%; S&P 500 +0.12%; Nasdaq +0.18%.

CURRENCIES: (JPY:USD [https://seekingalpha.com/symbol/JPY:USD]), (CNY:USD [https://seekingalpha.com/symbol/CNY:USD]), (AUD:USD [https://seekingalpha.com/symbol/AUD:USD]), (INR:USD [https://seekingalpha.com/symbol/INR:USD]), (HKD:USD [https://seekingalpha.com/symbol/HKD:USD]), (NZD:USD [https://seekingalpha.com/symbol/NZD:USD]).

MORE ON ASIA:

Japan's economy accelerates by 0.3% in Q2, beating forecasts [https://seekingalpha.com/news/4485858-japans-economy-accelerates-by-03-in-q2-beating-forecasts#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China's economy slows as industrial production, retail sales both miss targets; Jobless rate climbs to 5.2% in July [https://seekingalpha.com/news/4485862-chinas-economy-slows-as-industrial-production-retail-sales-both-miss-targets-jobless-rate-climbs-to-52-in-july#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australia's unemployment rate drops to 4.2% in July [https://seekingalpha.com/news/4485123-australia-unemployment-rate-drops-to-42-in-july#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australia's central bank cuts interest rates to 3.6%, lowest level since April 2023 amid moderating inflation and cautious outlook [https://seekingalpha.com/news/4483645-australias-central-bank-cuts-interest-rates-to-36-lowest-level-since-april-2023-amid-moderating-inflation-and-cautious-outlook#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China's consumer prices remain flat, beats forecasts; producer prices contract for 34th month [https://seekingalpha.com/news/4482989-chinas-consumer-prices-remain-flat-beats-forecasts-producer-prices-contract-for-34th-month#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]