(Sharecast News) - Asia-Pacific equities advanced on Tuesday, buoyed by optimism over US-China trade talks after US president Donald Trump said negotiations in Spain were progressing well, though sentiment was tempered by news of a "framework" deal on the divestment of Chinese-owned TikTok.
Treasury secretary Scott Bessent said the commercial terms of the TikTok deal had been settled and confirmed that Trump and Chinese president Xi Jinping would discuss the terms on Friday.
"Stocks continued their record-setting surge, and gold reached a new peak as investors anticipated an interest rate decrease from the Federal Reserve this week," said Patrick Munnelly, market strategy partner at TickMill.
"The MSCI All Country World Index increased by 0.1%, marking its 10th consecutive day of gains, which is its longest winning streak in over four years.
"Asian markets rose to reach an all-time high, on track for their best performance in almost five years.
"S&P 500 futures edged up 0.1% after the index closed at a record high.
"Futures for European stocks also saw a slight uptick.
"In other news, Trump announced plans to speak with Chinese leader Xi on Friday as US and Chinese officials finalised a framework agreement to keep the TikTok app operating in the US."
Nikkei leads regional gains on buoyant day for region
Japan led regional gains as the Nikkei 225 briefly surpassed the 45,000 mark for the first time before closing up 0.32% at 44,910.50, driven by sharp rallies in Sumco, up 9.02%, Dainippon Screen Manufacturing, up 6.13%, and Resonac, up 5.31%.
The broader Topix index rose 0.25% to 3,168.36.
Munnelly noted that "the yen strengthened against the dollar, partly due to Japan's agriculture minister Koizumi entering the leadership race within the ruling LDP," adding to the positive tone in Tokyo equities.
Chinese shares posted modest gains, with the Shanghai Composite edging up 0.04% to 3,861.87 and the Shenzhen Component rising 0.45% to 13,063.97.
Shenzhen Heungkong, Beijing Capital Development and Hunan Baili Engineering all surged around 10%.
However, Munnelly cautioned that "China's August data showed softness, with industrial production and retail sales missing expectations.
"However, the key concern is the ongoing decline in fixed asset investment, despite fiscal spending boosting credit growth.
"This slowdown stems from the government's 'anti-involution' policy, curbing overcapacity and dampening state-owned and manufacturing investment.
"This increases reliance on exports to sustain growth targets.
"Stimulus measures appear ineffective, as they focus on short-term fixes rather than addressing structural demand weakness."
Hong Kong's Hang Seng Index slipped 0.03% to 26,438.51, weighed down by steep declines for JD Health, down 5.82%, Alibaba Health Information Technology, down 3.89%, and Sands China, down 3.8%.
In South Korea, the Kospi 100 climbed 1.92% to 3,552.28, led by strong gains for LG Display, up 10.46%, LIG Nex1, up 9.49%, and Doosan Enerbility, up 7.65%.
Australia's S&P/ASX 200 added 0.28% to close at 8,877.70, with Iluka Resources up 5.48%, New Hope Corporation up 5.05% and Regis Healthcare up 4.47%.
Across the Tasman Sea, New Zealand's S&P/NZX 50 rose 0.2% to 13,234.89, supported by Summerset Group, up 2.41%, Eroad, up 2.23%, and Freightways, up 2.17%.
In currency markets, the dollar weakened 0.35% against the yen to JPY 146.88, slipped 0.01% against the Australian dollar to AUD 1.4993, and eased 0.06% against the New Zealand dollar to NZD 1.6738.
Gold prices also "soared to a new high, while a measure of the Dollar declined for the second consecutive day," according to Munnelly.
Oil prices were slightly lower, with Brent crude futures last down 0.27% on ICE at $67.26, and the NYMEX quote for West Texas Intermediate off 0.22% at $63.16.
There were no major regional economic data releases on Tuesday, with investors looking ahead to key global central bank meetings later this week.
Munnelly said "Treasuries held steady as investors waited for Tuesday's US retail sales figures," adding that "tomorrow's inflation data could carry greater significance in shaping economic outlooks."
Reporting by Josh White for Sharecast.com.
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