How market analysts react to Trump-Xi meet

US President Donald Trump and China's Xi Jinping concluded talks on Thursday at a South Korean air base with both leaders sounding optimistic about cooling trade tension between the world's two largest economies.

Trump said he struck a deal to reduce tariffs on China in exchange for Beijing resuming US soybean purchases, keeping rare earths exports flowing and cracking down on illicit trade of fentanyl.

Here are comments from investors and market analysts:

CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE

"This looks like an early attempt to reset the US–China narrative by reopening selective trade channels to restore confidence.

"Plenty of gaps still left, though no timeline on rare earths. Soybeans not a huge win if China's crushers don't need imports. And no mention of Nvidia's Blackwell chips. Even fentanyl tariffs might still sit near 45%.

"Hard to call this a clean risk-on. It feels more like risk-managed trading while investors wait for the China readout for clarity.

MO JI, MANAGING DIRECTOR AND CHIEF CHINA AND HONG KONG ECONOMIST, DBS GROUP, HONG KONG:

"Xi-Trump's first meeting in Trump's second term confirmed further stabilisation signs of the ongoing US and China trade tensions since April.

"Even though most of the details unveiled are priced in by the market, the market will react positively to the news, especially equities and commodities. This fundamentally reflects shared prosperity for these two big nations under partnership.

"However, the market should clearly understand China's goal is to reduce the existing tariff from 30% to 10%. That means the extension of current 30% tariff is not a meaningful shift for the US trade dynamics."

BESA DEDA, CHIEF ECONOMIST, WILLIAM BUCK, SYDNEY:

"The response from markets has been cautious in contrast to Trump's enthusiastic characterisation of the meeting with Xi as a 12 out of 10. Equity futures and Asian stock markets dipped initially on the news.

"Beijing's exporters benefit immediately as lower tariffs improve their competitive position against other suppliers, while US agricultural commodities should see a boost from resumed soybean purchases. However, there are still some structural issues that have been left unresolved, which could be contributing to the market's response and takes some shine off the truce.

"The technology standoff remains largely intact, that is, access to Nvidia's advanced Blackwell chips was not part of the discussions and the rare-earths licensing pause by China is only for one year."

KAREN JORRITSMA, HEAD OF AUSTRALIAN EQUITIES, RBC CAPITAL MARKETS, SYDNEY:

"It's a positive the global geopolitical situation could become more stable. That has been creating a lot of whippiness in the US market. I would say risk-on trades would become more popular as more stability is going to be welcomed by investors."

MASAHIKO LOO, SENIOR FIXED INCOME STRATEGIST, STATE STREET GLOBAL ADVISORS, TOKYO:

"The meeting represents a tactical pause or temporary de-escalation, rather than a structural breakthrough.

"Key sectors such as agriculture and tech saw short-term support, but underlying tensions remain. Structural decoupling is likely to persist.

"Markets are pricing in continued dialogue and tactical cooperation, but remain skeptical of any grand bargain—hence, still highly headline-sensitive.

"A shift in tone, particularly from Trump, could quickly reignite tariff threats and trigger risk-off sentiment."

VASU MENON, MANAGING DIRECTOR, INVESTMENT STRATEGY, OVERSEA-CHINESE BANKING CORPORATION (OCBC), SINGAPORE:

"Some of the agreements, like lowering tariffs on China, purchase of US soybeans by China and US access to Chinese rare earths, are good first moves to ease tensions.

"However, we need to see further details and wait to see if the measures actually take effect for greater comfort that the agreements are implemented."

"Relations between the two superpowers had been volatile partly because of Trump's flippant nature.

"For sustained confidence, investors will want to see a period of stability in relations."

HAO ZHOU, CHIEF ECONOMIST, GUOTAI JUNAN INTERNATIONAL, HONG KONG:

"Generally positive. And China and the United States still need more communications and exchanges.

Regarding the impact on financial markets, "I believe investors will still follow the fundamentals while keeping a close eye on the technological competition between China and the United States."

MARCO SUN, CHIEF FINANCIAL MARKET ANALYST, MUFG BANK (CHINA), SHANGHAI:

"The US-China meeting has calmed financial markets, with the agreement signalling that future cooperation remains open for discussion.

"It is anticipated that the meeting will pave the way for deeper trade and economic discussions between the two countries. Long-term relations and industrial developments are expected to be reshaped through mutual compromise."

TARECK HORCHANI, HEAD OF DEALING, PRIME BROKERAGE, MAYBANK SECURITIES, SINGAPORE:

"The US–China trade truce is likely to be greeted as a relief rally rather than a structural reset. When such truces occur, one of the first areas both sides highlight is agriculture, a politically sensitive sector in the United States, where farmers form a key constituency.

"Overall, this looks like a tactical pause rather than a strategic breakthrough."

DICKIE WONG, HEAD OF RESEARCH, KINGSTON SECURITIES, HONG KONG:

"I don't see there's any major optimistic surprise at this point, both for the markets and the US-China talks.

"It's still that same question - after the meeting ends, does it really mean the two countries will have a joint statement, and then the US will roll back all tariffs on China, drop tech curbs, and China will export rare earths again? I don't see any possibility.

"The markets have already priced in much of the positives and there could be an 'anticlimax' development."