Asian Stocks

• Asian equities fell on Friday after a U.S. trade official said chip export controls were not discussed in detail during Thursday’s U.S.-China talks, pressuring semiconductor shares across the region. • South Korea’s KOSPI led losses, dropping 6.3%, while Japan’s Nikkei 225 fell 2.1%, Hong Kong’s Hang Seng lost 1.6% and mainland China’s CSI 300 eased 0.8%. • The move matters because chip policy is central to Asia’s technology trade and investor sentiment, while the stronger dollar and higher Treasury yields added to risk-off pressure.

• Asian stocks rose on Friday, with gains in Japan, South Korea and Australia pushing the MSCI Asia Pacific Index higher after Wall Street gauges hit records. • The move was driven by the AI trade, strong corporate earnings and resilient U.S. consumer data, while Nvidia's six-day rally brought its market value closer to $6 trillion. • U.S. two-year Treasury yields traded at 4.03%, the highest since June, and Japan's 10-year government bond yield climbed after producer prices hit their highest level since 2023.

• U.S. President Donald Trump met with Chinese leader Xi Jinping at the Great Hall of the People in Beijing on Thursday to discuss U.S.-China relations, Taiwan, and economic cooperation, with no major breakthroughs expected by analysts. • Asian markets were mixed: Japan's Nikkei 225 fell 1% to 62,654.05 after hitting an intraday record above 63,700; South Korea's Kospi rose 1.8% to a record 7,981.41 driven by AI tech stocks; Shanghai Composite dropped 1.5% to 4,177.92 while Hong Kong's Hang Seng flatlined at 26,389.04. • The leaders agreed the Strait of Hormuz must remain open amid the ongoing Iran war over two months old, with hopes Beijing could leverage ties with Tehran; U.S. crude dipped 0.2% to $100.86 per barrel.

• Asian markets opened lower but mostly recovered on May 13, with MSCI Asia-Pacific shares outside Japan rebounding to a 0.3% gain after an initial 1% drop, driven by AI optimism offsetting US inflation and stalled US-Iran talks. • Japan's Nikkei 225 rose 0.8% to around 62,774, South Korea's Kospi surged 2.6% to a record 7,708-7,844 after falling 3.2% on Samsung Electronics' failed union pay deal, while Australia's S&P/ASX 200 slipped 0.3% to 8,645. • Brent crude fell 1.4% to $106.32 and US crude to $101.60 amid Middle East tensions, US 10-year Treasury yield eased to 4.459%, and dollar held steady at 98.369 against peers.

• Global equity markets including Nasdaq 100, S&P 500, Nikkei 225, and KOSPI reached fresh record highs driven by AI optimism overpowering US-Iran ceasefire tensions. • Rising oil prices, stronger inflation expectations, and hawkish Fed rhetoric pushed US Treasury yields higher while reinforcing higher-for-longer interest rates and USD strength. • President Trump is heading to China for a summit with Xi Jinping on Iran, nuclear issues, trade, and AI, joined by executives from Tesla, Apple, and BlackRock.