Asian stocks show mixed performance as investors assess outcomes from the recent Trump-Xi summit.

Asian stock markets exhibited a mixed performance on Thursday, reflecting a cautious sentiment among investors following the recent summit between U.S. President Donald Trump and Chinese leader Xi Jinping in Beijing. While Wall Street reached new heights, Chinese stocks declined, indicating a complex interplay of geopolitics and market dynamics.

During the summit, which took place at the Great Hall of the People, Trump and Xi discussed various aspects of U.S.-China relations, including tensions surrounding Taiwan. Analysts, however, remained skeptical about any significant outcomes stemming from the meeting, reflecting a prevailing sense of uncertainty in the market.

Futures in the United States indicated a slight upward trend. The Nikkei 225 index in Tokyo dropped by 1% to settle at 62,654.05, despite earlier reaching an intraday record of over 63,700 driven by strong corporate earnings. In contrast, South Korea’s Kospi experienced a robust increase, closing up 1.8% at a record 7,981.41, buoyed largely by technology stocks that have benefited from the ongoing artificial intelligence boom.

In China, the Shanghai Composite index fell by 1.5% to 4,177.92, while Hong Kong’s Hang Seng index managed a modest gain of 0.1%, ending the day at 26,426.06. Meanwhile, Australia’s S&P/ASX 200 saw a slight increase of 0.1% to reach 8,640.70. Taiwan’s Taiex and India’s Sensex also experienced upward movements, rising by 0.9% and 1% respectively.

In the energy sector, oil prices climbed amid ongoing uncertainty regarding the conflict in Iran. Market participants were hopeful that the Trump-Xi summit could yield results that might lead to stability in the region. Brent crude rose by 0.3% to 5.95 per barrel, reflecting a significant increase from approximately per barrel prior to the resurgence of hostilities in late February. Benchmark U.S. crude similarly rose by 0.4% to 1.44 per barrel.

Investors remain attentive to developments concerning China’s imports of advanced technology, particularly Nvidia’s H200 chips, following reports that Nvidia’s CEO Jensen Huang, among other industry leaders, accompanied Trump on his trip to China.

On the domestic front, U.S. markets displayed strength, with the S&P 500 climbing 0.6% to an all-time high of 7,444.25. The Dow Jones Industrial Average experienced a slight decline of 0.1% to 49,693.20, while the Nasdaq composite surged by 1.2% to reach 26,402.34, marking its own record high.

In the bond market, the yield on the U.S. 10-year Treasury note decreased to 4.46% from 4.47%, though it remains notably higher than the 3.97% recorded prior to the outbreak of the Iran conflict. Recent data indicated a surge in U.S. wholesale prices in April, driven by the inflationary pressures stemming from the energy crisis linked to Iran. Furthermore, the U.S. Senate confirmed Kevin Warsh as Trump’s nominee to lead the Federal Reserve, succeeding Jerome Powell, who has faced criticism from Trump regarding interest rate management.

As the dollar strengthened slightly against the yen, trading at 157.92, market participants continue to navigate a complex landscape characterized by geopolitical tensions and economic uncertainties.