Asia Stocks Slip After Trump–Xi Meeting; Focus Turns to BOJ and Fed
Asian shares gave up early gains on Thursday after the highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping failed to produce concrete progress on trade talks.
Investor sentiment turned cautious as attention shifted to the Bank of Japan’s (BOJ) policy decision and the Federal Reserve’s cautious signals on future interest rate cuts.
Wall Street indexes ended mostly flat overnight, while U.S. futures traded largely unchanged in early Asian hours around 05:40 GMT.
BOJ Holds Rates Steady; Nikkei Near Record Highs
The Bank of Japan left its short-term interest rate unchanged at 0.5%, matching expectations. Policymakers reiterated that any future rate hikes would depend on economic conditions and inflation trends.
The Nikkei 225 index briefly rose to a new record high of 51,638 points, before trimming gains to close 0.1% lower, while the TOPIX index remained 0.6% higher.
Investor optimism remained supported by domestic inflation above target and a weak yen, fueling hopes that the BOJ would maintain accommodative policy for longer to sustain growth.
Trump–Xi Meeting Ends Without Trade Breakthrough
Markets turned negative following reports that the Trump–Xi talks ended without any specific trade deal details.
Trump described the meeting as “great,” while Xi said both sides had reached a “basic consensus” on key issues. Trump added that a deal could be signed soon, noting that discussions had advanced on several major points.
However, the lack of concrete terms and lingering uncertainty around U.S.–China trade relations left investors cautious.
In China, the CSI 300 and Shanghai Composite each dipped 0.2%, while Hong Kong’s Hang Seng Index reversed earlier gains to close 0.1% lower.
Elsewhere, South Korea’s KOSPI traded 0.3% higher, retreating from early gains of over 1%.
Fed’s Cautious Tone Caps Regional Momentum
The U.S. Federal Reserve cut its benchmark rate by 25 basis points to a range of 3.75%–4.00% on Wednesday — the third cut this year. However, Fed Chair Jerome Powell signaled that another rate reduction in December was “far from a foregone conclusion,” highlighting divisions among policymakers.
His cautious remarks weighed on market sentiment, limiting upside in Asian equities.
Across the region, Australia’s S&P/ASX 200 slipped 0.5%, Singapore’s Straits Times Index fell 0.4%, and India’s Nifty 50 eased 0.3%.
