Asian shares mostly fall as region watches for outcome from Trump's
visits
[October 28, 2025] By
YURI KAGEYAMA
TOKYO (AP) — Asian shares were mostly lower on Tuesday as investors
watched to see what might come of a planned meeting between President
Donald Trump and China’s top leader.
Hong Kong’s Hang Seng dropped 0.6% to 26,276.18, reversing earlier
gains, and the Shanghai Composite index lost 0.2% to 3,988.68 after
briefly topping 4,000, its highest level in a decade.
Trump has suggested he expects to forge another trade agreement with
Chinese President Xi Jinping when they meet on the sidelines of a
Pacific Rim summit in South Korea later this week. That could alleviate
trade tensions that have roiled world markets and disrupted business
since Trump's return to the White House.
Japan's benchmark Nikkei 225 lost 0.6% to finish at 50,219.18, falling
back after hitting record highs since Sanae Takaichi became prime
minister pledging to increase economic stimulus and boost defense
spending.
On Tuesday, Trump is meeting with Takaichi, visiting a U.S. military
base and then meeting with business leaders in Tokyo. Both sides are
reaffirming their security alliance and Japan is promising to abide by
Trump's demands for more investments, and bigger role in its own defense
and increased imports from the U.S.
“So Asia opens not with fireworks, but with an uneasy calm — a market
breath half held. Traders aren’t chasing the rumor this time; they’re
watching, weighing, waiting for something real to sign,” said Stephen
Innes, managing partner at SPI Asset Management.
Australia's S&P/ASX 200 fell 0.5% to 9,012.50. South Korea's Kospi shed
0.8% to 4,010.41 after the government reported relatively strong
quarterly economic growth thanks to strong consumption, investments and
exports.
On Wall Street, stocks climbed to more records on Monday ahead of a week
packed with potentially market-moving events. The S&P 500 rose 1.2% to
6,875.16. The Dow Jones Industrial Average added 0.7% to 47,544.59, and
the Nasdaq composite jumped 1.9% to 23,637.46.
The U.S. stock market has been on a record-breaking rally. The S&P 500
has shot up a stunning 38% since hitting a low in April, when worries
about Trump’s tariffs on China and other countries were at their peak.
Besides hopes for easing trade tensions, the rally has also been built
on expectations for several more things to happen.
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A currency trader talks on the phone near a screen showing the Korea
Composite Stock Price Index (KOSPI) and the foreign exchange rate
between U.S. dollar and South Korean won, right, at the foreign
exchange dealing room of the Hana Bank headquarters in Seoul, South
Korea, Tuesday, Oct. 28, 2025. (AP Photo/Ahn Young-joon)
 One is that the Federal Reserve will
keep cutting interest rates in order to give the slowing job market
a boost. The Fed’s next announcement on interest rates is due on
Wednesday, and the nearly unanimous expectation among traders is
that it will cut the federal funds rate by a quarter of a percentage
point at a second straight meeting.
It’s not a certainty though, because the Fed has also warned it may
have to change course if inflation accelerates beyond its still-high
level. That’s because low interest rates can make inflation worse.
Besides lower interest rates, another expectation that’s propped up
stock prices is the forecast that U.S. companies will continue to
deliver solid growth in profits. Some of Wall Street’s most
influential stocks are set to report their results this week,
including Alphabet, Meta Platforms and Microsoft on Wednesday, and
Amazon and Apple on Thursday.
In the bond market, the yield on the 10-year Treasury eased to 3.99%
from 4.02% late Friday.
In energy trading, benchmark U.S. crude slipped 14 cents to $61.17 a
barrel. Brent crude fell 18 cents to $64.72 a barrel.
In currency trading, the U.S. dollar dropped to 152.22 Japanese yen
from 152.88 yen. The euro cost $1.1654, up from $1.1645.
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