Asian Shares Decline On Profit Taking Ahead Of Trump-Xi Meeting

RTTNews | 323 days ago

(RTTNews) - Asian stocks fell in cautious trade on Tuesday ss investors locked in some profits after recent gains.

Amid global trade tensions, the Association of Southeast Asian Nations (ASEAN) and China today signed an upgraded version of their Free Trade Agreement (FTA) during the summit in Kuala Lumpur, Malaysia.

China's Shanghai Composite index dropped 0.22 percent to 3,988.22 and Hong Kong's Hang Seng index dipped 0.33 percent to 26,346.14.

Ahead of talks between Donald Trump and Xi Jinping, Chinese Premier Li Qiang denounced "unilateralism" and said the world should not return to "the law of the jungle".

Trump said en route to Japan that he was hopeful of a deal when he sees Xi on Thursday.

Japanese markets slipped from record highs reached the previous day due to profit taking.

The Nikkei average settled 0.58 percent lower at 50,219.18 as Trump signed a rare metals deal with Japan's newly elected Prime Minister Sanae Takaichi. The broader Topix index fell 1.18 percent to 3,285.87.

Seoul stocks fell notably ahead of major events expected around the Asia-Pacific Economic Cooperation gathering this week. The Kospi average ended down 0.80 percent at 4,010.41 ahead of the Korea-U.S. summit on the 29th and the U.S.-China summit on the 30th.

Semiconductor stocks succumbed to profit taking, with Samsung Electronics falling 2.5 percent and SK Hynix losing 2.6 percent.

Australian markets declined as investors awaited crucial inflation data for direction. The benchmark S&P/ASX 200 slipped 0.48 percent to 9,012.50, dragged down by healthcare and technology stocks. The broader All Ordinaries index closed 0.60 percent lower at 9,295.80.

CSL plummeted nearly 16 percent after revising its long-term growth outlook.

WiseTech, which is undergoing investigation by ASIC and AFP, also plunged 16 percent. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally higher at 13,402.66, led by gains in financial stocks.

The dollar was weak in Asian trading ahead of a slew of central bank meetings and results from mega-cap U.S. technology companies.

Gold fell more than 1 percent, extending recent losses to fall toward $3,900 an ounce as trade optimism boosted investors' appetite for riskier assets.

Oil extended a two-day drop as investors weighed signs of a glut and the fallout from U.S. sanctions on Russian producers.

Overnight, U.S. stocks hit new record highs ahead of a pivotal week featuring the Federal Reserve's interest rate decision, a barrage of big tech earnings and Thursday's high stakes meeting between President Trump and his counterpart Xi.

On his way to Japan, Trump expressed optimism about reaching a trade deal with China after signing separate trade and mineral agreements with his Malaysian and Cambodian counterparts.

The S&P 500 rallied 1.2 percent to close above 6,800 for the first time in its strongest three-day rally since May.

The tech-heavy Nasdaq Composite surged 1.9 percent as Qualcomm announced new chips for AI data centers. The Dow gained 0.7 percent.

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