Asia Markets Dip as Trump-Xi Talks Near

Asian markets opened slightly lower on Tuesday as traders monitored President Donald Trump’s visit to Japan, ahead of high-stakes talks with China’s Xi Jinping later this week.

The US president is scheduled to meet Xi on Thursday in South Korea.

Optimistic remarks by Trump have raised hopes that the world’s two largest economies might reach a deal to ease their trade war.

Those expectations pushed Wall Street stocks to record highs on Monday, with investors also preparing for earnings announcements from tech giants such as Microsoft and Meta this week.

In Tokyo, Trump met new Japanese Prime Minister Sanae Takaichi, describing the United States as “an ally at the strongest level.”

The White House confirmed that the countries had signed an agreement on rare earth supplies, a sector dominated by China that has heightened tensions with Washington.

Japan’s Nikkei 225 pared back early gains after surpassing 50,000 points for the first time on Monday.

Hong Kong and Sydney equities also recorded modest declines, while Seoul dropped over 1 per cent. Taipei edged higher, and Shanghai remained flat.

Chris Weston of Pepperstone noted that Wall Street’s strong start to the week was “driven by news that the United States and China were set to forge some sort of trade agreement.”

He added that a lack of US economic data amid the government shutdown was limiting risk factors.

Despite continuing tensions between Beijing and Washington, the market optimism persists. Trump had warned of further tariffs on China from November 1, though he later softened his statement.

Ahead of his arrival in Japan, Trump expressed hope for a deal with Xi, marking their first face-to-face meeting since he returned to office, to take place on the sidelines of the Asia-Pacific Economic Cooperation summit.

Key Chinese trade negotiator Li Chenggang reported that a “preliminary consensus” with the United States had been reached.
Market Snapshot (Around 0230 GMT):

Tokyo – Nikkei 225: DOWN 0.4% at 50,287.81

Hong Kong – Hang Seng: DOWN 0.1% at 26,397.12

Shanghai – Composite: FLAT at 3,998.28

WTI Crude: FLAT at $61.31/bbl

Brent Crude: UP 0.1% at $65.66/bbl

Euro/USD: UP at 1.1658

Pound/USD: UP at 1.3355

Dollar/Yen: DOWN at 152.42

Euro/Pound: DOWN at 87.30 pence

New York – Dow: UP 0.71% at 47,544.59 (close)

London – FTSE 100: UP 0.1% at 9,653.82 (close)