Asian Stocks Waver as US-China Trade Talks Enter Second Day with Cautious Optimism – Asia Market Wrap

Asian shares pared gains of the morning and equity- index futures flipped ahead of the second day of talks between the US and China.

A regional stock gauge rose 0.2% after gaining as much as 0.7% earlier in the day. Negotiations are set to resume in London later Tuesday. Equity-index futures for the S&P 500 flipped and traded 0.1% lower. Shares in mainland China and Hong Kong also turned negative. The dollar edged up 0.1%.

While no significant breakthroughs were announced after the first day of trade talks, US officials had sounded optimistic about the negotiations. With a key inflation read on tap Wednesday – and the Federal Reserve entering a blackout period before a June 18 interest- rate decision – money managers are wrestling with what could propel the S&P 500 back to a record after the index soared 20% from its April lows.

US Commerce Secretary Howard Lutnick said discussions between Washington and Beijing were “fruitful” and Treasury Secretary Scott Bessent cited a “good meeting.” “We are doing welt with China. China’s not easy,” President Donald Trump told reporters at the White House on Monday. “I’m only getting good reports.” Talks will continue into a second day, according to a US official, as the two sides look to ease tensions over shipments of technology and rare earth elements. The advisers will meet again Tuesday at 10 a.m. in London, the official said.