This trading week is expected to be volatile with a series of policy meetings by major central banks and earnings reports from tech giants.
Senior economic officials from China and the United States reached a framework trade agreement on October 26, paving the way for US President Donald Trump and Chinese President Xi Jinping to make decisions during their highly anticipated meeting in South Korea later this week.
This agreement is expected to help halt the imposition of higher US tariffs and China's tightening of controls on rare earth exports, helping to ease investor concerns after months of escalating tensions between the world's two largest economies.
This positive news boosted regional stocks significantly. The MSCI Asia-Pacific index (excluding Japan) also rose 1.3%, reaching an all-time high.
Charu Chanana, chief strategist at Saxo, commented: “Investors want to see evidence that this trade truce will hold, and they expect signals of stimulus and reform from China to soon translate into real growth momentum.”
In Japan, the Nikkei 225 index closed above 50,000 points for the first time, rising more than 2% from the previous session, as investors reacted positively to progress in US-China trade talks. At the close, the index rose 1,212.67 points (2.46%) to 50,512.32 points.
South Korean stocks have recorded the strongest gains among the Group of Twenty (G20) leading developed and emerging economies since the beginning of the year, thanks to a strong influx of foreign capital into chip stocks. According to Yonhap Infomax, the KOSPI index has risen 68.5%, or 1,643.89 points, since January 2, 2025. At the close of trading on October 27, the index rose 101.24 points (2.57%), to 4,042.83 points.
In China, the Shanghai Composite index rose 1.18% to 3,996.94 points; while Hong Kong's Hang Seng index increased 1.05% to 26,433.70 points.
George Boubouras, CEO of K2 Asset Management, said the market was pleased with the recent progress in US-China relations. The Australian dollar (AUD) – often seen as a risk indicator associated with the Chinese economy – rose 0.42% to $0.6541, near a two-week high.
Investors this week are also watching monetary policy meetings in Japan, Canada, Europe, and the United States.
The US Federal Reserve (Fed) is expected to cut interest rates by 0.25 percentage points after data showed US consumer prices rose less than expected in September 2025. However, the government shutdown and its impact on economic data remain factors keeping investors cautious.
The US dollar edged higher to 151.13 yen/USD – near a two-week high. The euro traded at 1.16215 USD/euro. The USD Index was virtually unchanged at 98.982.
The European Central Bank (ECB) and the Bank of Japan (BoJ) are expected to keep interest rates unchanged this week. While the BoJ may discuss the possibility of resuming interest rate hikes as recession concerns stemming from tariffs ease, domestic political factors may lead the institution to maintain its current stance.
The busiest earnings season in the US is underway, with tech giants like Microsoft, Apple, Alphabet, Amazon, and MetaPlatforms releasing their reports this week.
Although the profit gap between the "Magnificent Seven" (the seven largest companies by market capitalization that dominate the US stock market) and the rest is narrowing, this group is still expected to report more positive results in the current quarter.
In the domestic market, at the close of trading on the afternoon of October 27, the VN-Index fell 30.64 points, or 1.82%, to 1,652.54 points. The HNX-Index dropped 1.92 points, or 0.72%, to 265.36 points.
Source: https://baotintuc.vn/thi-truong-tien-te/chung-khoan-chau-a-khoi-sac-phien-dau-tuan-20251027162327367.htm
![[Photo] General Secretary and President To Lam presides over a meeting on preparations for the review of one year of operation of the three-tiered government system.](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2026/06/02/1780391821195_a1-bnd-4595-9717-jpg.webp)
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