The view of Nanjing Road East Pedestrian Mall, the main shopping street in Shanghai.
Bruce Yuanyue Bi | The Image Bank | Getty Images
Asia-Pacific markets traded mixed as investors assessed the phone call between U.S. President Donald Trump and Chinese President Xi Jinping.
Trump and Xi spoke on Thursday and agreed that officials from the U.S. and China will meet soon to continue negotiations aimed at ending the ongoing trade war.
The call, which Trump described as “very good,” lasted for about 90 minutes, focusing “almost entirely” on trade and yielded a “very positive conclusion for both countries,” Trump wrote in a Truth Social post.
Japan’s benchmark Nikkei 225 rose 0.37% and the Topix gained 0.43%.
Australia’s S&P/ASX 200 was 0.19% lower. Hong Kong’s Hang Seng Index slipped 0.21%, while mainland China’s CSI 300 was down 0.12%.
India’s Nifty 50 climbed 0.24% after the country’s central bank delivered an outsized cut to its benchmark policy rate to 5.5% from 6%. This also marks a third straight rate cut since February, and comes below the median estimates of 5.75% in a Reuters poll.
South Korea markets are closed for a holiday.
“The U.S.‑China agreement to de‑escalate tensions, and the recent phone call between Trump and Xi, shows both countries have an economic ‘pain threshold,” said Luke Yeaman, chief economist and head of global economics and markets research at Commonwealth Bank.
While the call takes some severe downside scenarios off the table, tensions will remain high and more bouts of escalation are still on the cards, Yeaman wrote in a note published Friday. “In the longer term, both will continue to push for more economic independence.”
U.S. futures were mostly calm ahead of a key jobs report that is expected to shed light on the health of the U.S. economy.
Overnight stateside, the three major averages closed lower. The S&P 500 fell, spurred by a drop in shares of electric vehicle maker Tesla. The broad market index dipped 0.53% and closed at 5,939.30, while the Nasdaq Composite pulled back 0.83% to end at 19,298.45. The Dow Jones Industrial Average dropped 108 points, or 0.25%, to settle at 42,319.74.
— CNBC’s Pia Singh and Sean Conlon contributed to this report.
Correction: This blog has been updated to reflect that South Korean markets are closed for a holiday.
