Asian Stocks Decline as Investors Brace for Trump, Xi Phone Call

Asian stock markets closed lower on Friday as investors turned cautious ahead of a highly anticipated phone call between U.S. President Donald Trump and Chinese President Xi Jinping, a conversation expected to touch on trade, technology, and the fate of TikTok in the United States. The mood across trading floors was subdued, with most participants reluctant to take new positions before clarity emerged from the high-level dialogue. In Tokyo, the Nikkei 225 slipped after early gains as a stronger yen and rising Japanese bond yields weighed on exporters following the Bank of Japan’s latest policy statement, which hinted at a slightly more hawkish outlook despite leaving rates unchanged. South Korea’s Kospi, Taiwan’s Taiex, and India’s Sensex also moved lower, while Australia’s S&P/ASX 200 managed modest gains supported by resource stocks. Hong Kong’s Hang Seng and mainland Chinese markets were largely flat as investors stayed on the sidelines, reflecting thin liquidity and an air of uncertainty. The Trump–Xi call is widely expected to focus on the future of TikTok, with Washington insisting on a shift to American ownership on national security grounds. Market watchers believe any progress on the matter could carry broader implications for trade relations, technology flows, and tariff disputes between the world’s two largest economies. A breakthrough could be read as a signal of de-escalation, while a stalemate may reinforce investor caution. Analysts noted that the latest pullback also followed a strong U.S. rally overnight, led by technology stocks and chipmakers, which lifted Wall Street indices to new records but encouraged profit-taking in Asia. Traders across the region said markets remain headline-driven, with sentiment fragile as investors weigh global bond yields, central-bank signals, and geopolitical risks in equal measure. With the outcome of the Trump–Xi discussion yet to be known, investors appear content to hold back, leaving regional equities vulnerable to renewed volatility. A positive signal could trigger a relief rally, but any signs of hardened positions on tariffs or export controls may deepen the retreat that began the day