U.S.-China Talks: Asian Markets Rise After Trump Asia Tour
President Donald Trump’s diplomatic swing through Asia delivered immediate economic dividends, dramatically boosting Asian stock markets. This positive sentiment follows the major breakthrough achieved by US and Chinese economic officials in Malaysia. Negotiators reached a substantial trade framework over the weekend of October 25–26. This framework effectively averts a catastrophic trade war escalation.
The most critical component involves tariff relief. The US removed the threat of imposing crushing 100% tariffs on Chinese imports, which were set to begin November 1. In return, China made key strategic concessions. China agreed to a one-year delay in implementing its controversial rare earth export controls. These restrictions targeted minerals vital for global technology, including electric vehicles and defense systems. This concession immediately stabilized global supply chains. Furthermore, China committed to resuming substantial purchases of US soybeans. This move provides urgent relief for American agricultural producers.
Investors cheered the reduction in geopolitical risk. Major Asian indexes, including the Nikkei 225 and Kospi, surged by about 2%. Traders saw the framework as proof that both nations prioritize stability over confrontation. The deal is a tentative truce, not a comprehensive solution. However, it successfully paves the way for the ultimate high-stakes meeting. Presidents Trump and Xi Jinping must now finalize the terms this Thursday in South Korea. Their meeting will decide if this vital framework becomes a lasting, de-escalating agreement.