Asian stocks rise on AI sentiment, strong dollar

SINGAPORE — Asian stocks rose on Monday as the US-China trade truce and soaring spending on artificial intelligence (AI) kept risk sentiment aloft, while the dollar held near a three-month high after hawkish comments from US Federal Reserve policymakers.

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Investors are still focused on developments from last week, including central bank meetings and the US-China agreement on a yearlong trade truce that was within broad expectations. But doubts remain if the truce will last for the full duration.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.35% higher at 727.82, hovering near the 4-1/2-year high it touched last week. The index is up more than 27% this year, on course for its best year since 2017.

China’s blue-chip stocks eased 0.6% after data showed China’s factory activity in October expanded at a slower pace than in September as new orders and output both waned amid tariff anxiety. Hong Kong’s Hang Seng Index was 0.3% higher.

“We advise investors to lock in some gains on the rises and accumulate on the corrections, and rotate into more defensive positioning toward year end,” said Bank of America strategists, noting that optimism tied to the US-China trade truce has been priced in.