Asian stocks advanced Monday ahead of an expected Trump-Xi meeting this week in Washington, with Treasury Secretary Bessent reporting successful trade talks with Chinese officials. Markets rose on optimism over potential tariff reductions and AI developments, though oil prices fell as Middle East tensions eased slightly.
The Federal Reserve's interest rate hike may drive the 10-year US Treasury yield to 6%, up from current levels around 5%, based on historical patterns showing yields typically rise 50-110 basis points in the months following rate increases. Higher yields are spooking stock investors and could trigger significant market declines, with fund managers becoming less bullish and holding more cash amid economic uncertainty.