Asian Markets Trade Mixed as Trump-Xi Summit and AI Rally Shape Investor Sentiment

The cautious trading session came after another strong performance on Wall Street, where technology shares pushed the Nasdaq and S&P 500 to fresh record highs. Investor enthusiasm surrounding artificial intelligence companies continued to support US equities, particularly major technology firms involved in AI infrastructure and cloud computing.

Global attention remained fixed on Trump’s visit to Beijing, marking the first visit by a US president to China in nearly ten years. Markets are hoping the summit could ease tensions between the world’s two largest economies, especially around trade restrictions and advanced technology exports.

The two leaders met at the Great Hall of the People in Beijing, where both sides exchanged optimistic remarks during the opening of the summit. Trump described the future relationship between the two countries as “fantastic,” while Xi welcomed the visit and signaled openness to continued cooperation.

Despite the positive diplomatic tone, analysts remain cautious about expecting any immediate breakthrough on major trade disputes or technology-related restrictions.

At the same time, geopolitical tensions in the Middle East continued to create uncertainty in global markets. Concerns over disruptions around the Strait of Hormuz pushed energy prices higher, adding further pressure to inflation-sensitive sectors worldwide.

Brent crude oil traded above $105 per barrel during Asian trading hours, while West Texas Intermediate crude remained above $101 per barrel. Rising fuel prices have already begun affecting transportation and manufacturing costs across several economies.

Asian stock market performance remained uneven throughout the session. Markets in Hong Kong, Tokyo, Seoul, Taipei, and Manila recorded gains, supported by optimism around AI-driven technology shares and hopes for stable US-China relations.

Meanwhile, Shanghai, Singapore, and Wellington traded lower as investors assessed inflation risks and the broader impact of rising commodity prices.

In the United States, major technology companies once again led market gains overnight. Chipmaker NVIDIA and Alphabet were among the strongest performers, helping the Nasdaq close more than one percent higher.

The rally came despite fresh economic data showing stronger-than-expected inflation pressures in the United States. According to the US Department of Labor, wholesale prices increased sharply in April, recording their highest monthly rise since 2022.

Investors are now closely watching the outcome of the Trump-Xi discussions, with financial markets hoping for even limited progress on trade cooperation, semiconductor access, and AI-related investment policies.

Currency markets remained relatively stable during the session. The Japanese yen weakened slightly against the US dollar, while the Chinese yuan posted modest gains.

With AI investment continuing to dominate global market momentum and geopolitical tensions remaining elevated, analysts expect volatility to persist across international financial markets in the coming weeks.