Markets mixed as China's Xi arrives for US talks
HONG KONG: Asian markets were mixed on Thursday as traders eyed a high-stakes summit between US President Donald Trump and Chinese leader Xi Jinping set to focus on AI, trade and the Middle East war.
Asian markets experienced mixed reactions on Thursday as traders anticipated a significant summit between US President Donald Trump and Chinese leader Xi Jinping. The talks were expected to focus on AI, trade, and the Middle East war. Xi's arrival in Washington came alongside US Treasury Secretary Scott Bessent announcing an extension of the trade truce by two months, reaching a new deadline of January 10.
However, the absence of Chinese CEOs in Xi's delegation, while US tech leaders attended the event, dampened hopes for new business deals.
Pre-summit discussions between Bessent and his Chinese counterpart, He Lifeng, highlighted the need for a communication channel to address AI-related concerns, as the technology posed risks of wiping out humanity. Market participants were looking for signs of cooperation in managing AI risks without raising regulatory hurdles. Oil prices cooled slightly after surging dramatically due to optimism surrounding a potential deal to alleviate tensions in the Middle East, which were then dashed.
Brent crude oil dropped by one percent initially, showing a contrasting trend to the US bond yields that reached a 30-year high, following a rise in US bond yields.
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