ASIA, 27 October 2025 – Asian equities surged on 27 October as growing optimism over a potential U.S.–China trade deal bolstered risk appetite, while the U.S. dollar held steady ahead of a key Federal Reserve (Fed) meeting that could shape global monetary-policy direction.
Investor sentiment brightened after reports that senior economic officials from Washington and Beijing made progress in discussions that might pave the way for a broader agreement halting fresh U.S. tariffs and relaxing Chinese export controls. The prospect of eased trade tensions triggered sharp gains across Asian markets: South Korea’s KOSPI and Japan’s Nikkei 225 both climbed over 2 per cent to new highs.
At the same time, safe-haven assets softened. Gold prices slipped roughly 1 per cent, while U.S. 10-year Treasury yields rose by about 2.9 basis points as investors rotated into equities and out of fixed income. On the currency front, the dollar’s drift reflected a cautious market awaiting the outcome of the Fed’s upcoming policy meeting, where any signals of rate cuts or policy shifts will reverberate globally.
From a regional investment perspective, the move higher in equities underscores how closely Asian markets are tied to global macro-drivers, trade policy, U.S. interest-rate expectations, and Chinese-growth signals all feed into regional risk-assets. Analysts caution that while the mood is upbeat, the durability of the rally will depend on whether the trade deal materialises and corporate earnings actually improve.
