Asian stocks were subdued on Thursday morning as investors closely watched the highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping. The two leaders convened in Busan, South Korea, for high‑stakes talks aimed at defusing the ongoing trade war between the world’s two largest economies. This was their first encounter since 2019, and markets were eager for any potential breakthroughs.
The meeting followed a tech‑driven bull run in global markets, which had been further boosted by an interest‑rate cut in the United States announced by Federal Reserve Chair Jerome Powell on Wednesday. However, Powell’s comments also cast doubt on an additional cut in December, causing U.S. markets to wobble and the dollar to rise. The Nasdaq recovered, posting a fourth straight record after artificial‑intelligence giant Nvidia became the first company to reach a $5 trillion market value.
In Asia, major benchmarks were nearly flat during Thursday morning trading in Tokyo, Shanghai and Sydney. Hong Kong and Taipei posted modest gains, while Seoul’s market surged by more than one percent, helped by Samsung Electronics reporting a 32 percent year‑on‑year profit increase for the third quarter. Lorraine Tan, director of equity research for the region at Morningstar, said a “cautious reaction” is expected in Asia, noting that the decline in U.S. rates gives Asian central banks more flexibility to lower rates if needed.
The Trump‑Xi meeting began with a handshake and friendly greetings, with both leaders expressing optimism about their relationship. Trump said the two countries would have a “fantastic relationship for a long time,” while Xi said they should be “partners and friends.” Markets were buoyed by Trump’s confidence that a sweeping deal could be struck with Beijing. Key topics likely on the agenda include the supply of rare‑earth minerals, competition over artificial intelligence and computer chips, and geopolitical hotspots such as Ukraine and Taiwan.
As the talks continued, investors watched for any signs of progress or breakthroughs, aware that the outcome could have significant implications for global markets and trade. In the meantime, the Nikkei 225 edged up 0.1 percent, the Hang Seng Index rose 0.5 percent, and the Shanghai Composite slipped 0.2 percent. The dollar‑yen exchange rate fell, while the euro‑dollar and pound‑dollar rates rose.
The Trump‑Xi summit represents a critical moment in the ongoing trade tensions between the United States and China. As the world’s two largest economies, the results of their discussions will reverberate across global trade, markets and economic growth. Investors and analysts will continue to monitor developments closely, and any indication of progress or agreement is likely to sway market sentiment markedly.
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