Asian Stocks Trade Mixed Ahead of Trump-Xi Summit
Most Asian stock markets traded within a narrow range on Wednesday as investors remained cautious over the ongoing Iran conflict and its impact on global inflation, while attention shifted toward the upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping.
Regional markets also took a weak lead from Wall Street after stronger-than-expected U.S. inflation data increased concerns about the inflationary consequences of the Iran war.
However, S&P 500 futures moved higher after reports revealed that Jensen Huang, CEO of Nvidia, would join Trump’s delegation to China. The news also supported gains in Asian semiconductor stocks.
South Korea’s KOSPI Leads Regional Gains
South Korea’s KOSPI index outperformed regional peers, rising 1.4% and moving back toward record highs reached earlier this week.
The benchmark index had previously faced pressure due to profit-taking in major semiconductor stocks, particularly Samsung Electronics, following reports that negotiations aimed at preventing a strike at a key chipmaking facility had failed.
Investor sentiment was also briefly affected by speculation that the South Korean government could distribute public dividends tied to artificial intelligence profits. Officials later clarified that the proposal would not involve a windfall tax on local corporations.
Samsung recovered from early weakness, while SK Hynix surged 4% after reports confirmed Huang would accompany Trump during the China state visit.
The development raised hopes for increased semiconductor sales to China, potentially boosting demand across the sector.
China Markets Flat Ahead of High-Level Talks
Chinese equities traded mostly unchanged ahead of the Trump-Xi summit, with the Shanghai Shenzhen CSI 300, Shanghai Composite, and Hong Kong’s Hang Seng Index showing limited movement.
Trump’s visit to China is expected to officially begin later in the day, with discussions set to focus on trade tariffs, Taiwan, artificial intelligence, and broader geopolitical tensions.
The inclusion of Nvidia’s CEO in the U.S. delegation also improved optimism surrounding the summit and possible progress in technology-related discussions.
Japan Gains on Tech Stocks and Strong Economic Data
Japan’s Nikkei 225 and TOPIX indexes gained 0.7% and 1.2%, respectively, supported by strength in local technology shares.
Investor sentiment toward Japan was also boosted by economic data showing the country’s current account surplus reached a record high in March. Analysts attributed the improvement to growing AI-related demand and the benefits of a weaker yen.
Australian Banks Weigh on ASX 200
Australia’s ASX 200 index declined 0.4%, pressured by a sharp 10% drop in shares of Commonwealth Bank.
The country’s largest lender reportedly increased provisions for risks linked to instability in the Middle East, triggering broader weakness across Australia’s banking sector.
Other major Australian banks also moved lower as losses spread across the country’s “big four” lenders.
Meanwhile, Singapore’s Straits Times Index gained 0.8%, while India’s Nifty 50 index traded mostly flat after recording significant losses earlier in the week.
