Chinese and Hong Kong markets experienced a decline on Thursday as investors evaluated the significance of the first in-person meeting between U.S. President Donald Trump and Chinese President Xi Jinping since the commencement of Trump’s second term. Mainland China’s CSI 300 declined by 0.8%, closing at 4,709.9, while Hong Kong’s Hang Seng index decreased by 0.24% to 26,282.69, reversing earlier gains following the conclusion of the meeting. Trump announced a one-year agreement with China concerning rare earths and other essential minerals, stating that Washington will reduce fentanyl-related tariffs on Beijing to 10% following their meeting in South Korea.

Other Asia-Pacific markets exhibited a mixed performance on Thursday, following remarks from U.S. Federal Reserve Chair Jerome Powell, who suggested that a rate cut in December was not a “foregone conclusion.” The Federal Reserve on Wednesday reduced the benchmark federal funds rate by 25 basis points, aligning with expectations, bringing it to a range of 3.75%-4%. South Korea’s markets will be under scrutiny following the release of details regarding the trade agreement with Washington by Seoul’s chief policy advisor, Kim Yong-beom. South Korea is set to allocate $200 billion towards investments in the United States, adhering to an annual limit of $20 billion. The remaining $150 billion from its previously announced total pledge of $350 billion will be directed towards shipbuilding collaboration, as reported by local media sources.

The Kospi increased by 0.14%, driven by advancements in the auto and shipbuilding sectors, concluding at a new peak of 4,086.89. In contrast, the small-cap Kosdaq experienced a decline of 1.19%, settling at 890.86. Japan’s Nikkei 225 concluded slightly above the neutral point at 51,325.61, whereas the Topix experienced an increase of 0.69%, closing at 3,300.79. The Bank of Japan has maintained its benchmark interest rates at 0.5% during its initial meeting following Sanae Takaichi’s ascension to the role of prime minister earlier this month. Australia’s S&P/ASX 200 declined by 0.46%, concluding at 8,885.5, thereby registering its third consecutive day of losses.

In the U.S. overnight, the Dow Jones Industrial Average experienced a decline on Wednesday following Powell’s comments, despite reaching a record high earlier in the trading session. The Dow concluded the trading session with a decline of 0.2%, settling at 47,632.00, whereas the S&P 500 finished slightly lower at 6,890.59. However, the Nasdaq Composite gained 0.55% to a fresh record close of 23,958.47, supported by an increase in Nvidia.