Asian markets build on gains as China data lifts optimism

Asian markets rallied Monday, building on last week's healthy gains with investors buoyed by optimism over China-US trade talks and forecast-busting Chinese factory data.

Top negotiators from China and the US flagged progress in last week's discussions in Beijing on the tariffs row, with another round slated for this week in Washington.

While there have been few details, the general view on trading floors is that the economic superpowers are heading towards a deal that will end a long-running spat that helped sink global markets towards the end of last year.

Confidence an agreement will be reached helped overcome concerns about the world economy that saw a sharp sell-off in equities at the start of last week.

Beijing announced it would extend a delay on imposing tariffs on US cars, while also adding fentanyl to a list of controlled substances, two key concessions to Washington that have added to hopes for the trade deal.

"What matters is not whether these are big concessions or not, but that they are a quick response to the US concerns," Gai Xinzhe at Sino Ocean Capital told Bloomberg News.

"This is good for enhancing mutual trust in the negotiations."
"The closer we get to the proposed deadline of April 12 the more volatility we will surely see."