Shanghai Shenzhen CSI 300 gained 0.7%, the Shanghai Composite jumped 0.8%, Hang Seng index added 1%, Nikkei climbed more than 2%, while TOPIX index added 1.7%

Asian stock markets rose sharply in broad-based buying on Monday on signs of easing trade tensions between Beijing and Washington.

Shanghai Shenzhen CSI 300 gained 0.7%, while the Shanghai Composite jumped 0.8%.

Hang Seng index added 1%, with Hang Seng TECH sub-index climbing 1.2%.

Nikkei extended its record rally, climbing more than 2% to surpass the 50,000-point mark for the first time. It rose to as high as 50,491.23 points.

TOPIX index also climbed to an all-time high, adding 1.7% to 3,328.3 points.

Investors have been optimistic that new Prime Minister Senae Takaichi, viewed as fiscally dovish, would push for additional stimulus measures to sustain Japan’s fragile recovery.

Media reports showed last week that her government is preparing a fiscal package expected to focus on inflation relief.

In South Korea, the benchmark KOSPI also hit a new record high, climbing 2.3% to 4,038.39 points.

The rally was supported by robust gains in chipmaking giants Samsung Electronics and SK Hynix Inc.

Elsewhere, S&P/ASX 200 and Straits Times Index added 0.4% each.

Markets also drew support from a record-high finish on U.S. stock markets last week.

Markets are largely factoring in a 25-basis-point rate cut by that country’s central bank at the end of its two-day meeting on Wednesday, after inflation data for September came in weaker than expected.

Risk sentiment was further buoyed after Chinese and U.S. negotiators in Kuala Lumpur reached a preliminary trade framework over the weekend, setting the stage for a decision by Presidents Xi Jinping and Donald Trump at a summit later this week in South Korea.