US-China Trade Talks: Asia-Pacific Markets Set for Mixed Open

Asian markets are poised for a mixed open as investors await details of US-China trade talks. Hong Kong's Hang Seng Index futures are up, while Japan's Nikkei 225 is set to open higher. Australia's S&P/ASX 200 is expected to start the day lower. US investors are advised not to fret over potential market swings, which are likely to be temporary. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all finished higher to round out a winning week.

Asian markets are poised for a mixed open as investors await details of US-China trade talks. Hong Kong's Hang Seng Index futures are up, while Japan's Nikkei 225 is set to open higher. Australia's S&P/ASX 200 is expected to start the day lower. US investors are advised not to fret over potential market swings, which are likely to be temporary. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all finished higher to round out a winning week [3].

The recent developments in US-China trade negotiations have been a significant factor influencing market sentiment. According to a Reuters report, the US and China are likely to extend their tariff truce for another 90 days as trade negotiations continue. This pause on reciprocal tariffs is set to end on August 12, but the two sides may agree to another 3-month extension [1]. The upcoming discussions in Stockholm on Monday will mark the third round of talks between the United States and China, aimed at resolving their economic disagreements.

The Hong Kong stock market has been volatile in recent days, with the Hang Seng Tech Index falling more than 20% from its high in October this year and re-entering a "technical bear market." Despite this adjustment, there are still positive factors at play. The inflow of Southbound funds has remained strong, with a net buying of 19.656 billion Hong Kong dollars on November 14, marking the second-largest single-day net buying amount this year [2]. Additionally, leading companies like Tencent and JD.com have shown steady growth in their financial performance.

US stocks rose Friday, pushing the S&P 500 to its fifth-straight record this week and lifting the Nasdaq to a new all-time high. Earnings and trade optimism boosted investor sentiment, while President Trump eased market nerves by downplaying talk of firing Federal Reserve Chair Jerome Powell [3]. The S&P 500 rose about 0.4%, while the tech-heavy Nasdaq Composite advanced nearly 0.3%. The Dow Jones Industrial Average jumped 0.5%, with all three major gauges rising more than 1% for the week.

Investors are advised to stay informed about the upcoming trade talks and the potential impact on markets. The upcoming week brings the Fed's two-day policy meeting, the monthly US jobs report, and a flood of quarterly results highlighted by Apple, Meta, Microsoft, and Alphabet. The Aug. 1 deadline for countries to strike trade deals with the US or face "reciprocal" tariff hikes is also approaching, adding further uncertainty to market sentiment.

References:
[1] https://timesofindia.indiatimes.com/business/international-business/us-china-trade-talks-donald-trump-administration-beijing-may-extend-tariff-pause-by-another-3-months-says-report/articleshow/122937778.cms
[2] https://www.moomoo.com/news/post/70974680/record-tr4cking-news-options-market-statistics-musk-drops-tesla-2025-sales-target-warns
[3] https://finance.yahoo.com/news/live/stock-market-today-sp-500-clears-5th-straight-record-nasdaq-hits-fresh-high-as-earnings-trade-hopes-bolster-stocks-200226916.html