Investors trim exposure in Asia as US-China trade talks resume, with South Korea’s benchmark index falling sharply from record levels.
Asian stocks declined Friday, reversing Wall Street’s overnight gains as investors awaited high-stakes talks between US President Donald Trump and Chinese President Xi Jinping. Markets in China held near multi-year highs on reports of potential US chip export relaxations, but broader sentiment remained cautious.
South Korea’s KOSPI led losses, dropping from a record high after a US trade official indicated no detailed discussions on semiconductor export controls. Heavy selling in chipmakers and AI-related stocks amplified declines, while a finance ministry report warned of persistent economic risks from Middle East tensions.
Trump reiterated a hardline stance on Iran in a Thursday interview, adding to geopolitical uncertainty. The mixed signals weighed on regional equities, with traders balancing optimism over US-China dialogue against broader macro risks.