Asian stocks presented a mixed picture on Thursday, following a session of record-setting on Wall Street, as investors carefully examined the outcomes of U.S. President Donald Trump's summit with Chinese leader Xi Jinping in Beijing. The meeting, held at the Great Hall of the People, focused on U.S.-China relations and the Taiwan issue, though analysts anticipated no major breakthroughs.
Market Performance Across Asia
Japan's Nikkei 225 index rose by 0.3% to 63,448.87, after briefly touching a new all-time intraday high above 63,700, supported by strong corporate earnings. South Korea's Kospi gained 0.5% to 7,884.71, driven by technology-related stocks. Hong Kong's Hang Seng index climbed 0.7% to 26,584.88. In contrast, the Shanghai Composite index fell 0.9% to 4,204.41. Australia's S&P/ASX 200 edged down less than 0.1% to 8,627.80.
Elsewhere in the region, Taiwan's Taiex advanced 0.6%, and India's Sensex added 0.5%.
Oil Prices Rise Amid Iran War
Oil prices traded higher, with no resolution in sight for the Iran war that has been ongoing for over two months. Some market participants hoped the Trump-Xi meeting could yield results, as U.S. officials suggested Beijing might leverage its close economic ties with Tehran to persuade Iran to reopen the Strait of Hormuz. Brent crude, the international benchmark, rose 0.4% to $106.04 per barrel, a significant increase from around $70 before the conflict began in late February. The International Energy Agency reported on Wednesday that supply losses from the strait were depleting global oil inventories at a record pace. Benchmark U.S. crude also increased 0.4% to $101.43 per barrel.
Investor Focus on Nvidia Chips and Tech Stocks
Investors are also monitoring updates on China's imports of Nvidia's advanced H200 chips, following confirmation that Nvidia CEO Jensen Huang is part of Trump's China delegation, alongside other top executives such as Tesla's Elon Musk and Apple's Tim Cook.
On Wednesday, technology stocks led gains on Wall Street. The S&P 500 rose 0.6% to 7,444.25, reaching another all-time high. The Dow Jones Industrial Average edged down 0.1% to 49,693.20, while the technology-heavy Nasdaq composite climbed 1.2% to 26,402.34, setting its own record.
Treasury Yields and Economic Data
In bond markets, the yield on the U.S. 10-year Treasury edged down to 4.46% from 4.47%, though it remained significantly above the pre-Iran war level of around 3.97%. A report on Wednesday showed that U.S. wholesale prices surged in April, driven by the energy shock from the Iran war. Additionally, the U.S. Senate confirmed Kevin Warsh, Trump's nominee, to lead the Federal Reserve, replacing Jerome Powell, whom Trump had repeatedly criticized for not cutting interest rates faster or more deeply.
Currency Movements
The U.S. dollar fell to 157.85 Japanese yen from 157.86 yen. The euro traded at $1.1715, up from $1.1711.
