San Francisco Frontiers - Asia stocks rise on AI, US-China trade talks optimism

Global stocks had finished last week mixed as central banks made moves to curb inflation, including the US Federal Reserve's decision on Wednesday to lift interest rates.

US and Chinese economic officials met on Sunday for closely watched talks on trade and AI, ahead of a planned summit on Thursday with US President Donald Trump and Chinese President Xi Jinping in Washington.

US Treasury Secretary Scott Bessent said that following lengthy conversations, the two countries had discussed setting up a channel to communicate about AI issues called the "US-China AI dialogue".

Chinese state media described the talks as "candid, in-depth and constructive".

Hong Kong's main index was up half a percent one hour after trading started on Monday morning.

South Korea's tech-heavy benchmark surged 1.5 percent, while shares in Shanghai gained 0.5 percent.

Tokyo was closed for a public holiday, while Sydney's main index was down slightly.

"Scott Bessent and Chinese Vice Premier He Lifeng have already laid the groundwork (for the Trump-Xi meeting) in New York, with trade, investment and artificial intelligence on the table, but this is not a market waiting for a grand bargain," wrote Stephen Innes at Quintex Intel.

"It is waiting to see whether both sides can keep the next trade grenade in the drawer," he added.

Pressure has increased on monetary authorities around the world in recent months as oil prices remain elevated due to the war between the United States and Iran, which shows little sign of ending anytime soon.

In a widely expected move, the Bank of Japan raised interest rates on Friday to a three-decade high, but the yen sank against the dollar on fears the pace of hikes might be slower than expected.

That followed earlier tightening this month by the European Central Bank and the US Federal Reserve.

Oil prices fell on Monday morning, adding to Friday's declines on hopes that Saudi Arabia was moving to restore about half of crude shipments within days after they were disrupted by the stoppage of its East-West pipeline to the Red Sea.

But both major crude contracts remain around $100 a barrel, significantly higher than pre-war levels.

- Key figures at around 0230 GMT -

West Texas Intermediate: DOWN 2.1 percent at $98.19 per barrel

Brent North Sea Crude: DOWN 2.0 percent at $101.77 per barrel

Hong Kong - Hang Seng Index: UP 0.5 percent at 24,875.93

Shanghai - Composite: UP 0.5 percent at 3,932.64

Tokyo - Nikkei 225: closed for a holiday

Dollar/yen: UP at 156.83 yen from 156.73 yen on Friday

Euro/dollar: DOWN at $1.1482 from $1.1487

Pound/dollar: DOWN at $1.3386 from $1.3395

Euro/pound: UP at 85.78 pence from 85.76 pence

C.Diaz--SFF