Asia, 24 October 2025 – Asian equity markets, led by Chinese stocks, saw a lift on Friday as investors grew increasingly optimistic ahead of the planned bilateral meeting between Chinese President Xi Jinping and U.S. President Donald Trump at the upcoming APEC Summit.
The optimism was driven by recent signals that Beijing may adopt a more “pro‐active” policy stance, coupled with China’s readiness to engage in renewed high-level talks with Washington on trade, technology and export-curb issues. These combined dynamics boosted investor appetite for mainland and Hong Kong-listed stocks as hopes grew for de-escalation in the U.S.–China trade and tech standoff.
Mainland indices posted gains, supported by sectors sensitive to policy shifts—such as technology, industrials and exporters. Simultaneously, the prospect of a thaw in U.S.–China relations helped ease investor jitters over stalled trade talks and heavy regulatory burdens on Chinese tech companies. The upcoming Xi–Trump meeting is viewed as a catalyst: even the mere confirmation of the meeting has been enough to firm market sentiment.
Despite those encouraging signs, analysts emphasised that the rally may still be fragile. They cautioned that while markets are hopeful, actual outcomes will depend on the content and tone of policy announcements, especially on issues such as rare-earth export controls, semiconductor-technology restrictions and tariff arrangements.
In the broader Asian context, the improved China narrative can have spill-over effects: regional markets often take their cue from China’s policy trajectory and its external engagement. For investors in Malaysia and other ASEAN markets, a more stable China-U.S. link and supportive Beijing policies may translate into improved risk-sentiment, stronger export demand and better access to global supply chains, though domestic fundamentals and structural reforms remain crucial to watch.
Source: Bloomberg
