Asian Stocks Mixed Ahead of Trump-Xi Meeting

Asian major stock markets showed a cautious, mixed pattern on Thursday ahead of the key meeting between U.S. President Donald Trump and Chinese President Xi Jinping, with investors closely watching the summit, which is expected to discuss trade, artificial intelligence, and geopolitical issues, for clues on future policy direction.

**Cautious Market Sentiment, Diverging Major Indices**

Ahead of the highly anticipated China-U.S. summit, overall market sentiment remained tense. Hong Kong stocks came under pressure, with the Hang Seng Index falling 1% and the Hang Seng Tech Index dropping nearly 1.5%. Japanese markets were closed for a holiday, but its stock index futures also showed weakness, with Nikkei 225 futures down 0.2%. Meanwhile, U.S. stock index futures were broadly flat during the Asian trading session, reflecting a widespread wait-and-see attitude among global investors. According to The Wall Street Journal, markets were digesting earnings results while also keeping an eye on the latest developments in the Middle East.

**Geopolitical and Diplomatic Signals Rattle Markets**

This meeting is a core variable influencing market direction. According to reports, Xi Jinping is visiting the United States from September 23 to 25 at Trump's invitation, with officials from both sides having previously given positive assessments on issues such as AI safety and trade. However, investors remained wary of whether the talks could achieve significant breakthroughs. China's ambassador to the United States reiterated Beijing's red lines on issues such as Taiwan ahead of the meeting, a statement that heightened market caution.

**Oil Price Pullback Eases Some Inflation Concerns**

In the commodities market, oil prices retreated, providing some support to equities. Brent crude traded near $99 per barrel in early Asian trading. The decline in oil prices was mainly driven by expectations of increased supply and optimism over progress in U.S.-Iran talks. Trump previously stated that U.S. officials had completed a productive meeting with Iranian representatives, fueling hopes for de-escalation. The pullback in oil prices helped, to some extent, ease market concerns about inflation.