President Donald Trump announced an imminent summit with Chinese President Xi Jinping, calling it potentially historic.
The summit aims to formalise trade and security arrangements linked to the reopening of the Strait of Hormuz, boosting energy security.
Analysts view the diplomatic thaw as a move to ease global inflation pressures and support industrial and shipping stocks.
Market participants remain cautious, weighing a large U.S.-China trade package against ongoing Iran ceasefire negotiations.