Asian stock markets opened cautiously on Tuesday, with investors closely monitoring the outcome of Donald Trump’s meetings in Japan and the potential ripple effects on regional trade ahead of his expected talks with China’s President Xi Jinping. The session saw modest declines in Japan and South Korea, while China and Hong Kong posted slight gains as optimism lingered over possible diplomatic progress.
Japan edges lower amid policy uncertainty
In Tokyo, the Nikkei 225 slipped around 0.2 per cent after reaching multi-month highs last week. Investors reacted to mixed signals from Trump’s discussions with Japanese officials, including Prime Minister Sanae Takaichi and senior business leaders, which focused on trade realignment and investment cooperation. Reports suggest Japan is preparing to expand imports of U.S. agricultural products and automobiles to ease trade friction, but details remain unclear.
China and Hong Kong inch higher
The Shanghai Composite added 0.2 per cent in early trading, supported by expectations that a thaw in U.S.–China relations could strengthen regional exports and supply chains. The Hang Seng Index in Hong Kong rose 0.3 per cent, led by technology and property shares. Investors are positioning cautiously ahead of Trump’s meeting with Xi Jinping at the upcoming Pacific Rim summit, which could shape the next phase of global trade relations.
Currency moves and global cues
The U.S. dollar eased slightly against major Asian currencies as traders priced in a possible dovish signal from the Federal Reserve later this week. This provided some relief for regional exporters facing higher borrowing costs. In Australia, the ASX 200 declined 0.1 per cent, while South Korea’s Kospi fell 0.3 per cent, reflecting broader caution across the region.
Markets watch for clarity
Analysts say sentiment remains fragile as investors await concrete policy statements from both Washington and Tokyo. A cooperative stance could lift confidence across Asian equities, while renewed tension might prompt another round of risk aversion. For now, the market appears to be in a holding pattern — balancing optimism for improved trade ties with uncertainty over political tone and timing.
Newshub Editorial in Asia Pacific – 28 October 2025
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