MSCI’s Asia Pacific equities gauge advanced 0.2% with Japan shut for a public holiday. S&P 500 futures rose 0.3% after the underlying gauge eked out a gain Friday, while contracts on the Nasdaq 100 Index climbed 0.4%.

Supporting sentiment, Brent dropped 0.3% to about $103.50 a barrel, while a Bloomberg gauge of the dollar was little changed. The yen was a touch weaker at about 157.05 per dollar after falling more than 2% last week.

US and Chinese officials met in New York, with discussions led by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Bessent said he had a successful engagement with Chinese officials on trade and artificial intelligence.

The summit “is likely to do no more than keep their fragile relationship stable,” Commonwealth Bank of Australia strategists led by Joseph Capurso wrote in a note to clients. “We expect the People’s Bank of China to continue guiding the CNY stronger ahead of the summit.”

The talks add another layer of caution for markets already grappling with the Iran war, resurgent inflation concerns, heavy AI spending and elevated global bond yields. With little major economic data due in the next few days, attention will turn to the summit following a week in which the Federal Reserve raised interest rates for the first time since 2023 and the Bank of Japan lifted borrowing costs in a split decision.

In other corners of the market, gold was a touch weaker at about $4,370 an ounce. Australian bonds edged lower in early trading, tracking the decline in Treasuries Friday. Expectations for additional Fed rate hikes have pushed investors toward wagers on higher yields in shorter-maturity debt. The 10-year Treasury yield closed just below 5% Friday, with cash trading resuming in London later Monday due to the Japan holiday.

Higher interest rates will make record debt burdens harder to service and governments must urgently do more to narrow budget deficits, the International Monetary Fund said.

German bund futures will also be in focus after German Chancellor Friedrich Merz said he would stay put even after his party suffered its worst-ever result in a state election.

Elsewhere, China’s State Administration for Market Regulation on Sunday also pledged to step up scrutiny of malicious price competition, including through cost investigations and price inspections of companies engaging in such practices. Authorities said the aim is to shift competition away from price cuts and toward improving product quality.

In commodities, oil and liquefied natural gas shipments through the Strait of Hormuz have reached their highest level in six months over the past two weeks, a sign that US naval protection and mine-clearance efforts are “paying off,” a regional US commander said.

“Clearly, momentum is building,” Admiral Brad Cooper, head of US Central Command, said in a video message Saturday. The strait’s primary transit lanes are clear of mines, while Persian Gulf allies have shipped more than 1 billion barrels of crude through the waterway “in the last couple months,” he said.