Bangkok: Asian markets started the week on a high note as Japan’s Nikkei 225 index surpassed the 50,000 mark for the first time, signaling renewed investor confidence across the region. The rally followed reports of progress in trade discussions between the United States and China, along with President Donald Trump’s latest efforts to strengthen ties with Southeast Asian nations.

The strong performance of Asian markets came after Trump’s visit to Malaysia for a regional summit, where preliminary trade agreements were reached with Malaysia, Thailand, Cambodia, and Vietnam. The move is seen as part of Washington’s broader push to deepen economic cooperation in Asia and reduce dependency on Chinese supply chains.

At the same time, U.S. and Chinese negotiators reportedly reached an initial understanding on key trade terms, setting the stage for a meeting later this week between President Trump and Chinese leader Xi Jinping. Market analysts said that even a hint of progress between the two economic giants was enough to lift investor sentiment worldwide.

Japan’s market also benefited from domestic factors, including confidence in the new administration of Prime Minister Sanae Takaichi, who is viewed as business-friendly. The Japanese yen’s continued weakness further supported export-oriented companies, driving gains in the technology and automotive sectors.

Elsewhere in the region, South Korea’s KOSPI and Hong Kong’s Hang Seng indexes also advanced, while China’s Shanghai Composite posted modest gains. The upbeat momentum mirrored Wall Street’s recent rally, with the S&P 500, Dow Jones, and Nasdaq all setting record highs last week following positive inflation data that raised hopes for potential rate cuts by the U.S. Federal Reserve.

Economists said the combination of easing inflation, stable policy outlooks, and possible breakthroughs in global trade talks has created a more optimistic atmosphere for investors. However, they cautioned that the current enthusiasm could fade if negotiations between Washington and Beijing stall or if inflation pressures resurface.

While the rally highlights renewed faith in Asia’s economic outlook, experts noted that markets remain sensitive to geopolitical risks and policy changes. Still, the Nikkei’s historic milestone reflects growing belief that global trade relations may finally be turning a corner after years of uncertainty.