Asian stocks rose on Monday as investors reacted to a fresh batch of economic data from China and looked ahead to key trade talks between Beijing and Washington. The positive momentum reflects cautious optimism that upcoming discussions could help ease tensions between the two global superpowers.

China’s latest trade figures showed stronger-than-expected export growth in May, signaling resilience in the world’s second-largest economy despite ongoing global uncertainties. Imports also edged higher, suggesting a potential pickup in domestic demand. The data lifted investor confidence across the region, with major indexes in Shanghai, Hong Kong, and Tokyo all posting gains.

Markets are now turning their attention to the scheduled U.S.-China trade talks set to take place in London later this week. Investors hope that even limited progress could reduce geopolitical friction and create a more stable environment for international trade and investment.

Elsewhere in Asia, South Korea’s Kospi and Australia’s ASX 200 also saw modest gains, supported by improved risk sentiment and expectations that central banks will maintain accommodative monetary policies for now. However, analysts warn that any disappointment from the trade talks or further geopolitical tensions could reverse recent gains.

Traders are also eyeing upcoming U.S. inflation data and Federal Reserve commentary for additional signals on the global economic outlook. For now, optimism over China’s economic performance and the potential for better diplomatic ties is fueling a rebound in Asian equities.