Asian stocks surge on hopes for Trump-Xi progress ahead of tariff deadline

BENGALURU: Most Asian equities rallied on Friday as investors welcomed White House confirmation that US President Donald Trump will meet his Chinese counterpart Xi Jinping next week, raising hopes for progress on trade talks ahead of a looming tariff deadline.

Jakarta’s benchmark index jumped as much as 1 percent to a record high of 8,351.06, gaining 5 percent for the week in its strongest performance since early March.

South Korean shares surged as much as 2 percent to an all-time peak, as Seoul prepares to host next week’s Asia-Pacific Economic Cooperation (APEC) summit, where Trump and Xi will both make state visits. The index was headed for a fourth straight weekly gain, up 4.6 percent for the week.

The Trump-Xi meeting has lifted the region’s risk appetite, with investors increasingly bullish on Asian equities on signs that diplomatic engagement could ease trade tensions between the world’s two largest economies.

ASEAN’s major economies have held up well despite recent trade tensions, but growth is expected to slow in the coming months as the boost from frontloading fades, warned Jeff Ng, head of Asia macro strategy at Sumitomo Mitsui Banking Corp. Thai stocks rose 1.1 percent to a two-week high, jumping more than 3 percent this week. Equities in India and Malaysia rose 0.2 percent, each.

Barclays analysts said there was scope for a potential “handshake deal” between Trump and Indian Prime Minister Narendra Modi, if Modi attends the upcoming ASEAN summit.

The dollar index held steady, last up 0.1 percent, as investors braced for delayed inflation data that is unlikely to deter the Federal Reserve from lowering interest rates next week.

Currencies in the region were muted, with the Thai baht , Malaysian ringgit, and the Indian rupee up 0.1 percent.