For the first time in history, Japan’s Nikkei 225 surged past the 50,000 threshold on Monday, fueled by optimism surrounding U.S.-China trade negotiations and a robust performance from Wall Street. The index jumped 2.46%, closing at 50,512.32, while the Topix also experienced gains, rising 1.7% to finish at 3,325.05.

During his visit to Japan, Japanese Prime Minister Sanae Takaichi is slated to have a meeting with U.S. President Donald Trump later this week.

“The anticipated message from her is likely to advocate for a considerable boost in domestic demand through a high-pressure economy,” noted a report by Crédit Agricole CIB on Monday.

Strategists argue that a robust increase in Japan’s domestic demand could potentially eradicate the nation’s deflationary stagnation, while simultaneously aiding in the reduction of the U.S. trade deficit. This scenario presents a favorable outcome for both nations.

Across the Asian markets, South Korea’s Kospi surged 2.57% to a landmark 4,042.83, surpassing the 4,000 mark for the first time following a record-breaking performance on Friday. Meanwhile, the small-cap Kosdaq also climbed 2.22%, ending at 902.7. In Hong Kong, the Hang Seng Index advanced 1.05%, closing at 26,433.7, with the mainland CSI 300 seeing a rise of 0.83%.

Shares of K-pop entertainment giant Hybe soared nearly 10% after Bloomberg disclosed that BTS, their superstar group, is organizing a world tour that will cover 65 cities, with a significant portion of the concerts scheduled in North America.

Australia’s ASX/S&P 200 was up 0.41%, closing at 9,055.6.

The regional rally followed reports that top U.S. and Chinese trade negotiators had hashed out a framework on several disputed issues, paving the way for Trump and Chinese President Xi Jinping to sign off on the terms.

U.S. Treasury Secretary Scott Bessent said in an interview with CBS News Sunday that Trump’s proposed 100% tariffs on Chinese imports are “effectively off the table.” He added that China is expected to make significant soybean purchases and to delay broad restrictions on rare earth exports. The U.S., however, will maintain its current export controls on China, Bessent noted.

Last Friday, all three major averages closed at records as cool inflation data spurred optimism among investors that the Federal Reserve can stay on its rate-cutting path, boosting the U.S. economy and justifying higher valuations for equities.

The Dow Jones Industrial Average rose 472.51 points, or 1.01%, to 47,207.12, securing its first close above the 47,000 level ever. The S&P 500 added 0.79% to 6,791.69, while the Nasdaq Composite climbed 1.15% to 23,204.87.

Investors are also looking ahead to a widely expected interest rate cut by the Federal Reserve and a raft of Big Tech earnings reports.

— CNBC’s Lim Hui Jie, Sean Conlon and Pia Singh contributed to this report.