Many stock exchanges increased on Monday as the euro gained strength following the European Union and the United States reaching the "largest" agreement to prevent a harmful trade conflict.
Reports of the agreement, revealed by Donald Trump and European Commission leader Ursula von der Leyen on Sunday, came after US deals last week, such as with Japan, and precedes an upcoming phase of China-US discussions.
Investors were also preparing for a hectic week filled with economic data, central bank announcements, and results from some of the globe's largest corporations.
Trump and von der Leyen revealed at his golf course in Scotland that a base tariff of 15 percent would be imposed on European Union goods entering the United States.
"We've finalized an agreement. It's a favorable deal for all parties involved. This is likely the most significant deal ever achieved in any context," Trump stated, noting that the tariffs would be applied universally, covering Europe's key automotive industry, pharmaceuticals, and semiconductors.
Brussels also consented to buy "$750 billion in energy" from the United States, along with committing to $600 billion in further investments.
It's a favorable agreement," von der Leyen stated. "It will provide stability. It will offer predictability. This is crucial for our businesses on both sides of the Atlantic.
The report sent the euro higher, rising to $1.1779 from Friday's closing level of $1.1749.
And stocks advanced following their recent surge, fueled by the relief that nations were finalizing agreements with Washington.
Hong Kong was among the top performers, rising by nearly one percent, as Shanghai, Sydney, Seoul, Wellington, Taipei, and Jakarta also saw gains, alongside European and U.S. futures.
Tokyo remained down for a second consecutive day, after rising approximately five percent on Wednesday and Thursday following Japan's US agreement. Singapore and Seoul also experienced declines.
Substantial increases followed another historic day for the S&P 500 and Nasdaq on Wall Street.
"The continuous flow of news from the extension with China and the deal with the EU is evidently beneficial for the market, and could add more upward momentum to the euro... and should also bring renewed growth to European stocks," stated Chris Weston from Pepperstone.
Merchants are preparing for a busy week, as a group featuring US Treasury Secretary Scott Bessent engages in new trade discussions with a Chinese team led by Vice Premier He Lifeng in Stockholm.
Although both nations introduced tariffs on each other's goods in April that exceeded 100 percent, U.S. taxes this year have been temporarily reduced to 30 percent, while China's retaliatory measures have been cut to 10 percent.
A 90-day ceasefire, established following discussions in Geneva in May, is scheduled to end on August 12.
Also included in the schedule are earnings reports from technology giants such as Amazon, Apple, Meta, and Microsoft, along with information regarding U.S. economic growth and employment figures.
The recent meeting of the Federal Reserve is anticipated to end with officials maintaining current interest rates, although investors are eager to learn their perspectives on the year's remaining outlook considering Trump's tariffs and recent trade agreements.
The Bank of Japan is also expected to refrain from making significant changes to interest rates.
Major figures around 0230 GMT
Tokyo - Nikkei 225: Decreased by 0.7% to 41,148.07 (break)
Hong Kong - Hang Seng Index: Increased by 1.0% to 25,631.28
Shanghai - Composite: Increased by 0.3 percent to 3,602.97
Dollar/Yen: Increased to 147.74 yen from 147.68 yen on Friday
Euro/dollar: Increased to $1.1755 from $1.1738
Pound/dollar: Increased to $1.3436 from $1.3431
Euro/pound: Increased to 87.48 pence from 87.40 pence
West Texas Intermediate: Increased by 0.5 percent to $65.48 per barrel
Brent North Sea Oil: Increased by 0.5% to $68.80 per barrel
New York - Dow: Increased by 0.5% to 44,901.92 (closing value)
London - FTSE 100: Decreased by 0.2% to 9,120.31 (closing value)