Asian markets have surged to a 19-month high, driven by optimism surrounding the resolution of the US-China trade conflict.

The MSCI, the broadest index of Asia-Pacific stocks excluding Japan, rose by 0.47% on Monday morning in anticipation of the upcoming Phase 1 trade deal signing. Hong Kong’s Hang Seng index increased by 0.74%, South Korea’s Kospi by 0.73%, and Taiwanese shares by 0.6%, buoyed by President Tsai Ing-Wen’s recent landslide reelection victory.

While most Asian markets are on the rise, mainland Chinese indexes are showing a slower pace of growth. Nonetheless, Chinese equity indexes are enjoying their sixth consecutive week of gains, the longest streak since Q1 2019. The Shanghai Composite Index saw a modest 0.06% increase on Monday morning, with investors eagerly awaiting upcoming data releases later in the week and the signing of the Phase 1 trade deal on Wednesday.

The Nikkei, which was closed for a holiday, has fully recovered from earlier losses caused by Iran’s missile attacks on US military targets in Iraq. European stocks have mirrored the positive trend in Asia, with the Euro strengthening against other currencies on Monday morning.