Asian stock markets showed mixed results on Tuesday as investors focused on ongoing U.S.-China trade negotiations. These talks have the potential to significantly affect the global economy.
U.S. futures remained flat, while oil prices increased during early trading.
U.S. and China Meet in London
Chinese and U.S. officials held talks in London on Monday to discuss multiple trade issues. A second day of discussions was planned. The goal is to reach an agreement that would reduce the high tariffs both countries have imposed on each other. Most of these tariff hikes, introduced after President Donald Trump escalated the trade war, have been temporarily suspended. This suspension allows trade in many products, from small tech devices to large machinery, to continue.
Asian Markets Show Varied Results
During Asian trading hours, Tokyo’s Nikkei 225 gained 0.2%, closing at 38,169.76 after losing some early gains. South Korea’s Kospi index rose by 0.3% to 2,866.66.
In contrast, Hong Kong’s Hang Seng fell 0.4%, reversing earlier gains, to 24,083.58. The Shanghai Composite dropped 0.6% to 3,379.75. Taiwan’s Weighted Index saw a sharp rise of 2.1%.
Australia’s S&P/ASX 200 increased by 0.7%, reaching 8,578.50. India’s Sensex index remained mostly unchanged.
U.S. Markets Steady After Recent Gains
On Monday, the S&P 500 edged up 0.1% to 6,005.88. It is now just 2.3% below its all-time high set in February. The Dow Jones Industrial Average dropped slightly by 1 point, settling at 42,761.76. The Nasdaq Composite rose 0.3%, closing at 19,591.24.
The S&P 500’s rebound is supported by hopes that President Trump will lower tariffs after making trade deals with other countries. The index had fallen about 20% from its peak two months ago but has since returned to levels seen in April, before Trump announced broad tariffs in what he called “Liberation Day.”
Market Movers: Acquisitions and Corporate Changes
Some of the largest market moves came from acquisition announcements. Qualcomm’s stock rose 4.1% after agreeing to buy Alphawave Semi for $2.4 billion. IonQ, a company specializing in quantum computing and networking, gained 2.7% after announcing its purchase of Oxford Ionics for nearly $1.08 billion.
Warner Bros. Discovery shares fell 3% after an initial sharp gain. The company revealed plans to split into two. One new company will own Warner Bros. Television, HBO Max, and other film and TV brands. The other will keep CNN, TNT Sports, and other global entertainment, sports, and news brands, plus some digital products.
Tesla Stock Recovers After Recent Losses
Tesla’s stock rose 4.6% on Monday, recovering some losses from the previous week. The drop had followed a public breakdown in relations between Elon Musk and President Trump. This strained relationship could negatively affect other Musk companies, such as SpaceX, which hold U.S. government contracts.
Meanwhile, Rocket Lab, an aerospace firm that competes with SpaceX, increased 2.5%.
Bond Market and Inflation Outlook
The yield on the 10-year U.S. Treasury note fell slightly to 4.48% from 4.51% on Friday. A recent survey by the Federal Reserve Bank of New York indicated a small drop in consumer inflation expectations for May.
Economists anticipate that the inflation report, due Wednesday, will show the national inflation rate rising to 2.5% last month from 2.3%.
The Federal Reserve has kept interest rates steady as it watches the effects of tariffs on inflation and the economy. Rising household inflation expectations risk creating a cycle that could push inflation higher.
Oil Prices and Currency Movements
In early Tuesday trading, U.S. crude oil prices rose 19 cents to $65.47 per barrel. Brent crude, the international benchmark, increased 22 cents to $67.26 per barrel.
The U.S. dollar declined slightly against major currencies. It fell to 144.52 yen from 144.61 yen. The euro dropped to $1.1409 from $1.1421 against the dollar.
