HK, mainland stocks slip as eyes turn to summit

Asian markets experienced mixed fortunes on Thursday as traders kept a close watch on an important summit between Chinese President Xi Jinping and US President Donald Trump. The summit will likely concentrate on artificial intelligence, trade, and the Iran-Iraq war.

Hong Kong's main Hang Seng Index started the day lower, slipping by 184 points, or 0.74 percent, to reach 24,649. The tech index also saw a decline of 34 points, or 0.78 percent, bringing its total to 4,344. The China Enterprises Index opened lower by 58 points, or 0.7 percent, at 8,215.

Over in Shanghai, the Shanghai Composite Index saw a modest drop of 11 points, or 0.28 percent, to open at 3,925. The Shenzhen Component Index fell by 61 points, or 0.45 percent, to 13,575. The ChiNext Index closed down 0.38 percent at 3,366.

In comparison, South Korea's stock markets remained closed for the day, preventing a direct comparison. The Nikkei index opened at 65,476, or 0.7 percent, before adding another 854 points within a few hours. This was followed by a substantial rebound, reaching 854 points by noon.

President Xi's visit to Washington aligned with US Treasury Secretary Scott Bessent's announcement. Bessent revealed that the two superpowers had agreed to extend a trade truce for two more months. However, despite this trade truce, they haven't reached a lasting agreement yet. This agreement will now extend past its November 10 deadline and continue until January 10.

Even though both sides have maintained a tariff truce for almost a year, expectations for business deals have been dampened by the absence of any Chinese chief executives in Xi's delegation. Meanwhile, top US tech bosses, including major AI company leaders, are expected to attend Thursday's banquet. Pre-summit talks between Vice Premier He Lifeng and Bessent involved discussions about establishing a communication channel for AI issues, as warnings about the potential dangers of AI to humanity have been growing.