The MSCI Asia Pacific Index rose as much as 0.2% to 220.71, with technology shares like Alibaba Group Holding Ltd. and Samsung Electronics Co. being the top contributors to gains.
A close at this level would be higher than the gauge’s previous all-time high of 220.64 reached in February 2021. Benchmarks in Vietnam, mainland China and South Korea have been among the region’s top performers over the past three months.
Like their global peers, stocks in Asia have been rallying since US President Donald Trump backpedalled on tariffs in April, with subsequent deals with a number of nations such as Japan and Korea, easing concerns around world trade.
The rally has been boosted by a strong liquidity-aided rebound in onshore Chinese stocks over the past two months. The CSI 300 Index surged 10% in August alone to be among the world’s top-performing equity gauges.
On Monday, onshore Chinese stocks were among the top performers in Asia. The CSI 300 Index jumped as much as 1% as data showing China’s economic activity slowed more than expected across the board in August added to the likelihood that policymakers will roll out more stimulus to hit the official growth goal. South Korea’s Kospi index also hit a fresh record after the government abandoned a plan to lower the capital gains tax threshold for stock investors. Japan was closed for a holiday.
The MSCI Asia gauge has climbed more than 21% so far in 2025, outperforming the S&P 500 Index by about 10 percentage points.
Investors are expressing confidence that Asia’s outperformance will last as the Fed’s expected easing burnishes the appeal of emerging-market assets in the region. A gauge of global equities, too is trading at record levels as US inflation data for August affirmed the case for the Fed to lower rates.
Central banks in Asia, too have started cutting interest rates more aggressively than expected, and others are seen joining the fray in the coming months, as they seek to counter the drag on growth from Trump’s tariffs.
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