Asian stock markets opened on Thursday with a muted tone as investors digested the outcome of the much-anticipated meeting between former US president Donald Trump and Chinese leader Xi Jinping, alongside signals of restraint from regional central banks.
China and Japan diverge
In early trading, the Shanghai Composite Index slipped about 0.3 per cent, giving up modest gains from the previous session as traders awaited clarity on trade measures and industrial policy. The Hang Seng Index in Hong Kong moved in the opposite direction, rising nearly 0.8 per cent amid renewed optimism that Washington could ease certain export restrictions on Chinese technology firms.
Japan’s Nikkei 225 edged 0.4 per cent lower after the Bank of Japan opted to leave its policy rate unchanged, a move seen as a sign of continued caution about both inflation and growth. The yen held steady against the dollar, and government bond yields slipped slightly following the decision.
Cautious sentiment across the region
Elsewhere in Asia, the South Korean Kospi and Australia’s ASX 200 traded in narrow ranges as investors balanced corporate earnings against macroeconomic headwinds. The broader MSCI Asia-Pacific index was down about 0.5 per cent, reflecting a broader risk-off mood.
Market participants also kept a close eye on energy prices, which have steadied after several volatile sessions. Oil futures retreated slightly, easing concerns over renewed inflationary pressure.
Trade talks and rate signals dominate the outlook
The Trump–Xi dialogue, though framed as constructive, offered few tangible details on tariff adjustments or export controls. Investors now expect policy follow-through to determine whether sentiment improves in the coming days. At the same time, the combination of weak manufacturing data from China and subdued inflation readings in Japan is reinforcing expectations that Asia’s major economies will tread carefully on monetary tightening.
Short-term technicals and outlook
Technically, regional indices remain confined to recent trading ranges. Analysts view 0.5 to 1 per cent swings as short-term noise rather than the beginning of a sustained move. Unless fresh catalysts emerge—either in the form of confirmed trade progress or upbeat corporate results—the outlook for the next sessions remains cautiously neutral.
Newshub Editorial in Asia – 30 October 2025
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