Asia-Pacific markets traded mixed on Thursday as investors awaited the outcome of a high-stakes meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing, which is expected to provide insights into the future of U.S.-China relations and global trade dynamics [1]. President Trump arrived in Beijing on Wednesday, accompanied by prominent U.S. executives including Tesla CEO Elon Musk and Nvidia CEO Jensen Huang [1].
Market performance across the region was varied: Japan's Nikkei 225 rose by 0.27%, while the Topix declined 0.23%. South Korea's Kospi gained 0.38%, and the Kosdaq surged 1.31%. In Australia, the S&P/ASX 200 fell 0.16%. Hong Kong's Hang Seng index futures stood at 26,799, up from the previous close of 26,388.44 [1].
Goldman Sachs analysts indicated that the Trump-Xi meeting is likely to focus on trade and export controls, such as tariffs and restrictions on rare earths and semiconductors, rather than achieving a broad reset in bilateral relations. The analysts suggested that China might agree to increase purchases of U.S. farm goods, energy, and aircraft in exchange for avoiding further tariff hikes [1]. Goldman Sachs maintained a positive outlook on Chinese assets, citing export competitiveness and an undervalued currency, and reiterated an overweight recommendation on Chinese equities, particularly mainland A-shares over Hong Kong-listed H-shares [1].
In the U.S., futures were relatively stable, with S&P futures and Nasdaq 100 futures up 0.1% and 0.4%, respectively, and Dow Jones Industrial Average futures rising by 111 points, or nearly 0.3%. On Wall Street, the S&P 500 reached a new all-time high, climbing 0.58% to 7,444.25, while the Nasdaq rose 1.2% to 26,402.34, both setting fresh intraday and closing records. The Dow Jones Industrial Average, however, slipped by 67.36 points, or 0.14%, to close at 49,693.20 [1].
CONCLUSION
The Trump-Xi summit in Beijing has generated cautious optimism in Asian markets, with analysts expecting targeted discussions on trade and export controls rather than a comprehensive reset in relations. While market reactions have been mixed, the meeting is seen as a potential tactical catalyst for Chinese assets, with Goldman Sachs maintaining a positive stance on Chinese equities.