Markets started the week on a high as optimism over a potential U.S.–China trade breakthrough sent global equities climbing. Asian markets led the charge Hong Kong’s Hang Seng jumped more than 2%, Japan’s Nikkei gained 1.7%, and Shanghai’s index moved higher as traders priced in progress toward tariff relief. Europe followed, with cyclical sectors like industrials, tech, and energy all rallying.

Reports suggest negotiators from Washington and Beijing are exploring steps to roll back select tariffs and enhance cooperation on semiconductor supply chains a move investors see as an early sign of economic détente. Commodities joined the rally too: oil, copper, and iron ore all ticked up on renewed global-demand hopes. Meanwhile, bond yields edged higher as investors rotated from safe havens to risk assets, and the U.S. dollar slipped slightly as capital flowed back into equities.

Analysts say markets are craving stability after months of policy uncertainty and uneven growth. Even a small step toward trade peace between the world’s two biggest economies can trigger a domino effect easing inflationary pressure, stabilizing supply chains, and boosting business confidence worldwide.