Asian shares mixed as U.S.-China trade talks influence markets

Asian markets were uneven on Tuesday as investors monitored ongoing U.S.-China trade negotiations, which could significantly impact the global economy. U.S. futures held steady, while oil prices climbed.

A second round of talks followed Monday’s discussions in London, with hopes of easing high tariffs. Most hikes from Trump’s trade war remain paused, allowing continued trade in goods from tech to machinery.

Market highlights:

• Tokyo’s Nikkei 225 rose 0.2% to 38,169.76 (trimming early gains).
• South Korea’s Kospi gained 0.3% to 2,866.66.
• Hong Kong’s Hang Seng fell 0.4% to 24,083.58.
• Shanghai Composite dropped 0.6% to 3,379.75.
• Taiwan’s Taiex jumped 2.1%.
• Australia’s S&P/ASX 200 rose 0.7% to 8,578.50.
• India’s Sensex was flat.

U.S. markets recap:

• S&P 500 edged up 0.1%, nearing its February record.
• Dow Jones dipped slightly (by 1 point).
• Nasdaq gained 0.3%.

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Optimism over potential tariff reductions has helped stocks recover from recent losses. Big buyout deals also moved markets:

• Qualcomm surged 4.1% on a $2.4B deal for Alphawave Semi.
• IonQ rose 2.7% after agreeing to buy Oxford Ionics for $ 1.08 B.

Other key points:

• Tesla rebounded 4.6% after last week’s slump tied to Musk’s rift with Trump.
• Warner Bros. Discovery fell 3% on plans to split into two companies.
• Oil prices rose slightly (U.S. crude at $65.47, Brent at $67.26).
• 10-year Treasury yield dipped to 4.48% as inflation expectations eased.

Investors await Wednesday’s U.S. inflation report, expected to show a slight rise to 2.5%. The Fed remains cautious, weighing the tariffs’ economic impact.