HONG KONG: Asian markets were mixed on Thursday (May 14) as investors weighed high-stakes US-China talks and persistent inflation concerns, which tempered optimism fuelled by record highs on Wall Street.US President Donald Trump and Chinese counterpart Xi Jinping met in Beijing for a closely watched summit that covered thorny issues including Taiwan, but yielded few concrete outcomes in its opening phase.The cautious mood came after another tech-led rally on Wall Street, where the Nasdaq and S&P 500 hit record highs, driven by continued enthusiasm for artificial intelligence investment.Trump praised Xi as a "great leader" and "friend", predicting a "fantastic future together" in talks lasting more than two hours at the Great Hall of the People.
Xi, however, delivered a blunt warning on Taiwan -- which Beijing claims as its territory -- saying missteps could push the two powers into conflict.Accompanying Trump was a US delegation including Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and high-powered business leaders such Nvidia's Jensen Huang, Apple's Tim Cook and Tesla's Elon Musk.There was warmth from the get-go, with Trump telling Xi "we're going to have a fantastic future together" and the Chinese leader telling his American counterpart that he was "happy" for the visit."China's doors to the outside world will open wider and wider ... American companies will enjoy even brighter prospects in China," Xi told the business executives, according to Chinese state media.Experts said the presence of top executives underscored the deep economic interdependence between the two nations despite years of tensions and talk of decoupling.SPI Asset Management's Stephen Innes said in a comment that Beijing used the summit to project "stability, strategic coexistence, and economic interdependence"."The presence of top US corporate leaders highlighted how deeply connected the American and Chinese economic systems still remain," he added.He warned that the key risks facing markets were increasingly intertwined."Rare earths, AI, Taiwan, and the Strait of Hormuz are now interconnected strategic pressure points shaping the next phase of global market risk," Innes said.The meeting in Beijing took place against the backdrop of conflict in the Middle East, which has disrupted shipping through the Strait of Hormuz and driven energy prices higher.International benchmark Brent crude hovered just above US$105 a barrel on Thursday.Across Asia, Seoul led gains as the Kospi climbed 1.75 per cent, nearing the 8,000 mark. Hong Kong, Taipei, Mumbai, Bangkok and Manila also advanced.Shanghai, Tokyo, Jakarta, Wellington and Singapore slid.Following Wall Street's lead, Taiwanese tech giant Foxconn reported a 19 per cent jump in quarterly net profit, fuelled by booming demand for AI servers, and forecast strong growth in shipments this year.But there were signs of strain elsewhere. Japanese automaker Honda announced a US$2.6 billion operating loss, its first since 1957, after a sweeping overhaul of its electric vehicle strategy in the United States, citing heavy charges and policy shifts under the Trump administration.Honda blamed tariffs and the removal of EV incentives, as well as intensifying competition in China.London, Paris and Frankfurt opened on the front foot, tracking the positive lead from Wall Street.The Nasdaq led major US indices on Wednesday, piling on 1.2 per cent behind big gains in most tech giants, including Nvidia and Google parent Alphabet.That came despite a US wholesale inflation report that greatly exceeded expectations, following Tuesday's rise in the consumer price index.Wholesale prices rose 6 per cent for the 12 months ending in April, according to US Department of Labor data.Month-on-month increases greatly exceeded expectations and were at their highest level since March 2022.
