HONG KONG: Asian markets opened slightly cooler on Tuesday (Oct 28) as traders kept an eye on Donald Trump’s visit to Asian ally Japan ahead of high-stakes talks with China’s Xi Jinping later this week.
The United States president is due to meet Xi on Thursday in South Korea, and rosy comments by Trump have fuelled optimism that the world’s two largest economies can strike a deal to ease their trade war.
Those hopes spurred stocks to record highs on Monday on Wall Street, where investors are also preparing for earnings reports from tech giants including Microsoft and Meta this week.
In Tokyo on Tuesday, Trump met new Japanese Prime Minister Sanae Takaichi, declaring that the US was “an ally at the strongest level”.
The White House announced that the countries had signed an agreement on the supply of rare earths, a critical sector dominated by China that has deepened the antipathy between Washington and Beijing.
Japan’s Nikkei 225 index pared back gains early Tuesday after surging above 50,000 points for the first time the previous day.
Shares in Hong Kong and Sydney also recorded gentle drops, while Seoul fell by more than 1 per cent.
Taipei stocks were up slightly, while Shanghai was flat.
