Asian Stocks Dip after Xi-Trump Talks, and Traders Await Jobs Data – Asia Market Wrap

Asian equities edged down as talks between President Donald Trump and Xi Jinping failed to boost sentiment and investors stayed on the sidelines ahead of the US jobs data.

The MSCI Asia-Pacific Index slipped 0.1% Friday, but is still on course for its seventh gain in eight weeks. Hong Kong shares fell 0.2% while mainland Chinese stocks dipped 0.1%. Treasuries and the dollar were steady after dropping in the prior session. Shares of some Tesla Inc. suppliers declined in Asia amid differences between Trump and Elon Musk.

Indian shares fluctuated after the Reserve Bank of India changed its monetary policy stance to neutral. Stocks had turned positive after the RBI cut its key rate by more than expected.

Investors have refrained from making big bets ahead of the key payrolls report, which may provide clues on whether the Fed will be able to meet market expectations for two interest rate cuts in 2025. Traders are also disappointed that the Xi-Trump call didn’t provide any significant breakthroughs. Trump only said talks would begin shortly at a location to be determined as the countries aimed to resolve disputes over tariffs and rare earth minerals.

On trade. Trump acknowledged Thursday the relationship with China had gotten “a little off track” but said now “we’re in very good shape with China and the trade deal.” Additional negotiations, Trump said, would occur “shortly” at “a location to be determined.” Whether the call will unlock lasting trade peace, and crucially, shipments of critical minerals needed by US companies, remains to be seen.