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Donald Trump and Xi Jinping agreed on Thursday to calm the trade war between China and the United States that has roiled global markets, with Washington cutting some tariffs and Beijing committing to keep supplies of critical rare earths flowing.Trump called his first meeting with Xi in six years a “great success”, while the Chinese leader said the two reached an “important consensus” towards solving the fight between the world’s two top economies.”I thought it was an amazing meeting,” Trump said after the talks in Busan, South Korea, praising Xi as a “tremendous leader of a very powerful country” and saying he would visit China in April.Trump added that the deal included China immediately buying “tremendous amounts of soybeans and other farm products”, a key issue for Trump’s support in farm country and a point of leverage for Beijing.The US leader said the talks yielded an extendable one-year deal on China’s supply of crucial rare earths, materials that are essential for sophisticated electronic components across a range of industries.Beijing’s commerce ministry also confirmed it would suspend for one year certain export restrictions, including on rare earth materials, a sector where China is hugely dominant.”All the rare earths has been settled, and that’s for the world,” Trump told reporters aboard Air Force One.Xi said a “consensus” had been reached and urged “follow-up work as soon as possible”.Trump added that the Chinese leader had also agreed to “work very hard to stop the flow” of deadly opioid fentanyl, a trade in which Washington has accused Beijing of being complicit.”I put a 20-percent tariff on China because of the fentanyl coming in… and based on his statements today I am going to reduce that by 10 percent,” Trump said.And in social media post after leaving South Korea, Trump declared “Our Farmers will be very happy!” with the outcomes of the talks.The former reality TV star went on to say in the post that Beijing would “begin the process of purchasing American Energy”, potentially involving oil and gas from Alaska.Officials from the United States and China would meet to hash out that “energy deal”, he added.- ‘Partners and friends’ -Neither leader made any public comments immediately after the talks, which lasted around an hour and 40 minutes.Trump headed straight to Air Force One, waving and pumping his fist as he boarded the plane. The jet took off minutes later.Xi was seen getting into his limousine outside the closed-door meeting.Xi acknowledged before the meeting began in earnest that both sides did not always see eye to eye, but should strive to be “partners and friends”.”China and the US can jointly shoulder our responsibility as major countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world,” said Xi.Sitting opposite each other, each leader was flanked by senior officials including Secretary of State Marco Rubio, Treasury chief Scott Bessent and Commerce Secretary Howard Lutnick.Xi’s team, which arrived from Beijing shortly before — the US side was already in South Korea — included Foreign Minister Wang Yi, Commerce Minister Wang Wentao and Vice Premier He Lifeng.- Crowning achievement -The meeting took place on the sidelines of an Asia-Pacific Economic Cooperation (APEC) summit of 21 countries in Gyeongju including the leaders of Japan, Australia and Canada.It was the final stop on an Asia tour that saw Trump, 79, showered with praise and gifts, including a replica of an ancient Korean golden crown.In Japan, new Prime Minister Sanae Takaichi said she would nominate Trump for the Nobel Peace Prize and gave him a putter and a gold-plated golf ball.However, Trump’s hopes of a re-run of his 2019 meeting with North Korean leader Kim Jong Un at the Demilitarized Zone frontier were dashed.Trump said though that they would meet in the “not too distant future” and that he would like to “straighten out” tensions between North and South Korea.One surprise in the talks could have been if Xi had brought up Taiwan, with speculation that Beijing might press Trump to water down US backing for the self-ruled island.But Trump said that Taiwan “never came up. That was not discussed actually.”burs-stu-oho/jm

The Bank of Japan kept interest rates on hold Thursday at 0.5 percent, warning of lingering economic “high uncertainties” linked to US trade tariffs.The decision, expected by economists, came after the first monetary policy meeting since Sanae Takaichi became Japan’s new premier last week.She is widely seen as in favour of monetary easing and active fiscal spending to boost the economy. “High uncertainties still remain regarding the impact of trade and other policies on economic activity and prices at home and abroad,” the BoJ said in a statement following the decision.The announcement also came after US Treasury Secretary Scott Bessent told his Japanese counterpart about the importance of “anchoring inflation expectations”. Bessent visited Tokyo along with US President Donald Trump, who was meeting Takaichi face-to-face for the first time.BoJ governor Kazuo Ueda shrugged off any pressure from Bessent, telling reporters after the policy decision: “We will calmly implement appropriate monetary policies based on the economic and price outlook and the degree of certainty regarding that outlook.”Stephen Innes, managing partner of SPI Asset Management, said the “message was clear” from the rate decision.”Japan’s balance sheet can no longer afford the distortions of ultra-low rates, and the global system can no longer run on the assumption that the yen will always absorb excess liquidity,” he said.Marcel Thieliant, head of Asia-Pacific for Capital Economics, said in a note that “crucially, there are few signs that the Bank is becoming less concerned about the impact of higher tariffs”. “The Bank still sees a risk that lower profits could result in a slowdown in wage growth as firms put more effort on cost-cutting,” he said, predicting that the next rate hike will come in January.- Rate pause -Officials began hiking rates from below zero in March last year as figures signalled an end to the country’s “lost decades” of stagnation, with inflation surging.However, with worries about the global outlook and US tariffs growing, the bank paused its tightening measures at the start of 2025, with the last increase in January, taking rates to their highest level in 17 years.”The reason for maintaining the interest rate is the uncertainty surrounding the overseas economy, particularly the US economy, and global trade policy trends,” Ueda said.”We would like to observe more data” including annual union negotiations over pay starting early next year, as corporate revenues may be affected by US tariffs, he said.He declined to comment on the timing and the size of the next rate hike.The yen weakened against the dollar after the BoJ decision, which was carried by seven votes to two.Takaichi, 64, an acolyte of former premier Shinzo Abe, has advocated her mentor’s “Abenomics” policies, including massive monetary easing and active fiscal spending.Her ministers, however, said the BoJ has independence in its monetary decisions.

US President Donald Trump called the meeting Thursday with China’s Xi Jinping a “great success”, after the world’s top two economies agreed a deal to trim fentanyl-related tariffs and keep supplies of critical rare earths flowing.There was no immediate comment from the Chinese government after what was the leaders’ first face-to-face meeting since 2019 and a key point in their trade battle that has rattled markets and snarled supply chains.”I thought it was an amazing meeting,” Trump said after the talks in Busan, South Korea, praising Xi as a “tremendous leader of a very powerful country” and saying he would visit China in April.Trump added that the deal included China immediately buying “tremendous amounts of soybeans and other farm products”, a key issue for Trump’s support in farm country and a point of leverage for Beijing.The US leader said the talks yielded an extendable one-year deal on China’s supply of crucial rare earths, materials that are essential for sophisticated electronic components across a range of industries.”All the rare earths has been settled, and that’s for the world,” Trump told reporters aboard Air Force One.Beijing had announced in early October additional controls on the export of rare earths, a sector where China is hugely dominant.”On fentanyl we agreed that he was going to work very hard to stop the flow… I put a 20-percent tariff on China because of the fentanyl coming in… and based on his statements today I am going to reduce that by 10 percent,” Trump said.- Nuclear testing -Neither leader made any public comments immediately after the talks, which lasted around an hour and 40 minutes.Trump headed straight to Air Force One, waving and pumping his fist as he boarded the plane. The jet took off minutes later.Xi was seen getting into his limousine outside the closed-door meeting.Xi acknowledged before the meeting began in earnest that both sides did not always see eye to eye, but should strive to be “partners and friends”.”China and the US can jointly shoulder our responsibility as major countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world,” said Xi.Sitting opposite each other, each leader was flanked by senior officials including Secretary of State Marco Rubio, Treasury chief Scott Bessent and Commerce Secretary Howard Lutnick.Xi’s team, which arrived from Beijing shortly before — the US side was already in South Korea — included Foreign Minister Wang Yi, Commerce Minister Wang Wentao and Vice Premier He Lifeng.- Nuclear testing -Minutes before meeting Xi, Trump wrote on Truth Social that “because of other countries testing programs, I have instructed the Department of War to start testing our Nuclear Weapons on an equal basis”.Trump added that in terms of nuclear weapons stockpiles, China was a “distant third” behind the United States and Russia “but will be even in 5 years”.The comments came a day after Russian President Vladimir Putin said Moscow had successfully tested a nuclear-capable, nuclear-powered underwater drone, in defiance of US warnings.It was not immediately clear if Trump was referring to doing test nuclear explosions, something the United States last did in 1992, or testing weapons capable of carrying atomic warheads.- Crowning achievement -The meeting took place on the sidelines of an Asia-Pacific Economic Cooperation (APEC) summit of 21 countries in Gyeongju including the leaders of Japan, Australia and Canada.It is the final stop on an Asia tour that saw Trump, 79, showered with praise and gifts, including a replica of an ancient Korean golden crown.In Japan, new Prime Minister Sanae Takaichi said she would nominate Trump for the Nobel Peace Prize and gave him a putter and a gold-plated golf ball.However, Trump’s hopes of a re-run of his 2019 meeting with North Korean leader Kim Jong Un at the Demilitarized Zone frontier appear to have dashed.Trump said though that they would meet in the “not too distant future” and that he would like to “straighten out” tensions between North and South Korea.On Thursday, he hailed the military alliance with South Korea as “stronger than ever” and said he had given the green-light for Seoul to build a nuclear powered submarine.One surprise in the talks could have been if Xi had brought up Taiwan, with speculation that Beijing might press Trump to water down US backing for the self-ruled island.Since 1979, Washington has recognised Beijing over Taipei as the sole legitimate Chinese power, even though the United States remains Taiwan’s most powerful ally and its main arms supplier.But Trump said that Taiwan “never came up. That was not discussed actually.”The US president added though that he and Xi agreed to “work together” on the issue of Ukraine.burs-stu/jm

US President Donald Trump and China’s leader Xi Jinping opened on Thursday their first face-to-face meeting in six years, seeking a truce to end a trade war that has roiled the world economy.The US president, who minutes before said he has ordered the Pentagon to start nuclear weapons testing on a level with China and Russia, complimented a smiling Xi as a “very tough negotiator” as they shook hands.”We’ll have a great understanding,” Trump said in Busan, South Korea, predicting a “fantastic relationship for a long period of time”.Xi acknowledged that both sides did not always see eye to eye, but should strive to be “partners and friends”.”China and the US can jointly shoulder our responsibility as major countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world,” said Xi.Sitting opposite each other each leader was flanked by senior officials including Secretary of State Marco Rubio, Treasury chief Scott Bessent and Commerce Secretary Howard Lutnick.Xi’s team, which arrived from Beijing shortly before — the US side was already in South Korea — included Foreign Minister Wang Yi, Commerce Minister Wang Wentao and Vice Premier He Lifeng.The US leader’s latest missive on nuclear weapons testing broadened the stakes for his talks with Xi.– ‘Even in five years’ –Minutes before meeting Xi, Trump wrote on Truth Social that “because of other countries testing programs, I have instructed the Department of War to start testing our Nuclear Weapons on an equal basis”.Trump added that in terms of nuclear weapons stockpiles, China was a “distant third” behind the United States and Russia “but will be even in 5 years”.The comments came a day after Russian President Vladimir Putin said Moscow had successfully tested a nuclear-capable, nuclear-powered underwater drone, in defiance of US warnings.Trump did not provide details or respond to a question from a journalist about his surprising nuclear announcement before the crucial meeting with Xi.The world’s two top economies’ trade tussle — encompassing everything from rare earths to soybeans and port fees — has rocked markets and gummed up supply chains for months.Following productive preparatory talks by top officials, Trump said on Wednesday on his way to South Korea that “a lot of problems are going to be solved” in a “great meeting”.Trump indicated that the agreement would include lowering 20 percent tariffs on Chinese goods related to fentanyl, which has killed tens of thousands of Americans.Of particular importance to Trump — with an eye on US farmers — is whether China will resume purchases of American soybeans.Another major issue is export controls on rare earths announced by Beijing this month that prompted Trump to call the Xi summit into question.Beijing holds a virtual monopoly on these materials, which are essential for sophisticated electronic components across a range of industries.”The easiest wins could include removing port fees for ships or lifting some fentanyl-related tariffs, which fall fully under presidential authority. China, in turn, could agree to purchase more US commodities to show goodwill,” Yue Su at The Economist Intelligence Unit told AFP.- Crowning achievement -The meeting is taking place on the sidelines of an Asia-Pacific Economic Cooperation (APEC) summit of 21 countries in Gyeongju including the leaders of Japan, Australia and Canada.It is the final stop on an Asia tour that saw Trump showered with praise and gifts, including a replica of an ancient Korean golden crown.In Japan, new Prime Minister Sanae Takaichi said she would nominate Trump for the Nobel Peace Prize and gave him a putter and a gold-plated golf ball.However, Trump’s hopes of a re-run of his 2019 meeting with North Korean leader Kim Jong Un at the Demilitarized Zone frontier appear to have dashed.Trump said though that they would meet in the “not too distant future” and that he would like to “straighten out” tensions between North and South Korea.On Thursday, he hailed the military alliance with South Korea as “stronger than ever” and said he had given the green-light for Seoul to build a nuclear powered submarine.One surprise in the talks could be if Xi brings up Taiwan, with speculation that Beijing might press Trump to water down US backing for the self-ruled island.Since 1979, Washington has recognised Beijing over Taipei as the sole legitimate Chinese power, even though the United States remains Taiwan’s most powerful ally and its main arms supplier.burs-stu/hmn

Asian stocks were subdued Thursday morning, with investors closely watching talks between the leaders of the United States and China for potential breakthroughs to defuse a damaging trade war.Presidents Donald Trump and Xi Jinping met for the first time since 2019 in Busan, South Korea, engaging in high-stakes talks about the relationship between the world’s top two economies.The meeting comes after days of a tech-fuelled bull run in global markets, boosted further by an interest rate cut in the United States, confirmed Wednesday by Federal Reserve Chair Jerome Powell.But Powell’s announcement also cast doubt on an additional cut in December, jolting US markets and lifting the value of the dollar.The Nasdaq later recovered, finishing at a fourth straight record after another gain by artificial intelligence giant Nvidia, which became the first company to reach a $5 trillion market value.A “cautious reaction” is expected in Asia, wrote Lorraine Tan, director of equity research for the region at Morningstar, in a note.”The decline in US rates provides more flexibility to the Asian central banks to lower if they want to as there may be some pressure on the USD,” she said.Main benchmarks were nearly flat during Thursday morning trading in Tokyo, Shanghai and Sydney.Hong Kong — back from Wednesday’s public holiday — and Taipei tracked moderate gains.Stocks in Seoul surged by more than one percent, helped partly by tech giant Samsung Electronics posting a 32 percent rise in profits on-year for the third quarter and strong automotive gains.Attention is now laser-focused on talks between Trump and Xi, which began with a handshake and friendly greetings before closed-door discussions between the two sides’ delegations.Before the talks kicked off in earnest, Xi said the the two countries “should be partners and friends”, while Trump said they would have a “fantastic relationship for a long time”.Markets have been boosted by comments this week by Trump expressing confidence that a sweeping deal can be struck with Beijing.Among the key issues that could be discussed are the supply of rare earth minerals — a strategic sector currently dominated by China — competition over artificial intelligence and computer chips and geopolitical hotspots, including Ukraine and Taiwan.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 51,368.71Hong Kong – Hang Seng Index: UP 0.5 percent at 26,475.53Shanghai – Composite: DOWN 0.2 percent at 4,009.86West Texas Intermediate: DOWN 0.6 percent at $60.09 per barrelBrent North Sea Crude: DOWN 0.6 percent at $64.53 per barrelEuro/dollar: UP at $1.1615 from $1.1595 on WednesdayPound/dollar: UP at $1.3205 from $1.3187Dollar/yen: DOWN at 152.49 yen from 152.82 yenEuro/pound: UP at 87.96 from 87.94 penceNew York – Dow: DOWN 0.2 percent at 47,632.00 (close)London – FTSE 100: UP 0.6 percent at 9,756.14 (close)

South Korean tech giant Samsung Electronics posted on Thursday a 32 percent rise in profits on-year for the third quarter, driven by AI-fuelled market demand for memory chips.      The artificial intelligence industry has provided a major boost to South Korea’s Samsung and SK hynix, two of the world’s leading memory chip makers, as their products have become indispensable for AI infrastructure.Samsung’s latest earnings report marks a sharp turnaround for the company, which saw its profits plunge more than 50 percent on-year in the second quarter due to the impact of US curbs on AI chip exports to China.”Operating profit increased to 12.2 trillion won (US$8.5 billion). The Device Solutions (DS) Division reported a 19 percent increase in sales quarter-on-quarter, with the Memory Business setting an all-time high for quarterly sales,” the company said in its earnings statement.Its smartphone division logged an 11 percent rise quarter-on-quarter in revenue “due to the successful launch of new foldable phones and solid flagship sales”, it added.”Looking ahead to Q4, the rapid growth of the AI industry is expected to open up new market opportunities for both the DS and DX Divisions,” it said, referring to its chips and smartphone units.The current boom in AI has pushed up prices and shipments of conventional NAND and DRAM memory chips, alongside soaring demand for high-bandwidth memory (HBM) chips used in AI servers.Samsung said it would invest 40.9 trillion won in its semiconductor facilities this year to meet this growing demand.”The DS division will focus on transitioning to advanced processes and reinforcing existing production lines to meet demand for high-value products,” the company said.Following the earnings report, Samsung’s shares broke a previous record, jumping more than five percent to 105,800 won in the first 30 minutes of trading.- Share surge -“This quarter’s performance is a clear result of the memory market boom,” Hwang Min-seong, research director at market analysis firm Counterpoint, told AFP.  “In the DRAM segment, it has significantly narrowed the gap with SK hynix, the current leader and if this trend continues, we think Samsung could regain DRAM leadership as early as next quarter,” he added. DRAM is a type of memory chip that temporarily stores data, essential for devices like computers, smartphones and AI servers.  Against the backdrop of AI market opportunities, Samsung — a bellwether on South Korea’s benchmark Kospi index — has seen its shares surge more than 90 percent since the beginning of this year.Samsung signed in July a $16.5 billion deal with Tesla under which it will provide the electric car maker with AI6 chips through the end of 2033.The agreement is expected to provide a major boost to Samsung, which has faced headwinds in its foundry business, lagging rivals SK hynix and Taiwan’s TSMC in the race for cutting-edge artificial intelligence chips.The foundry business involves contract-based manufacturing of chips designed by other companies.

Farmers who own New Zealand dairy cooperative Fonterra voted Thursday to sell its consumer business to French group Lactalis, a decision slammed by the country’s foreign minister as “utter madness”.Final farmer votes were cast in a virtual meeting in the morning, with 88.5 percent of the total ballot cast in favour of the sale of Fonterra’s global consumer and associated businesses, Fonterra said in a statement.The total sale price is NZ$4.2 billion (US$2.4 billion), after including the value of Bega Cheese licences worth NZ$375 million, the company said.Foreign Minister Winston Peters said the vote meant “iconic” brands such as Anchor, Mainland and Kapiti were being sold off to the French firm.”This is utter madness. It is economic self-sabotage,” Peters said in a post on social media.”This is an outrageous short-sighted sugar hit that is just giving away New Zealand’s added value to a company from a major EU country,” he said.Fonterra would lose the long-term security of its business, Peters warned.”Three years after this deal starts, Lactalis can begin the three year notice to terminate the milk supply to these brands. Six years is meaningless for a long-term exporter. When it’s over, it really is over.”Fonterra chairman Peter McBride said the company was pleased to have received a “strong mandate” from the farmers who own the cooperative.”We will be able to focus Fonterra’s energy and efforts on where we do our best work. We will have a simplified and more focused business, the value of which cannot be overstated,” he said.Fonterra said it expected the deal to be completed in the first half of 2026 pending regulatory approvals and the process of separating the consumer operations from the rest of the coop.

Donald Trump and Chinese leader Xi Jinping will seek a truce in their bruising trade war on Thursday, with the US president predicting a “great meeting” but Beijing being more circumspect.The tussle between the world’s top two economies, which encompasses everything from rare earths to soybeans and port fees, has rocked markets and gummed up supply chains for months.The meeting between the two men, their first face-to-face encounter since 2019, was due to start at 11:00 am (0200 GMT) in Busan, South Korea, according to the White House.Following productive preparatory talks by top officials, Trump said on Wednesday on his way to South Korea that “a lot of problems are going to be solved”.”We have been talking to them, we’re not just walking into the meeting cold… I think we’re going to have a very good outcome for our country and for the world, actually,” he said.China’s foreign ministry was more cautious, saying that Xi and Trump would have “in-depth” talks on “major issues”.”We are willing to work together with the US side to ensure that this meeting yields positive outcomes, provides new guidance and injects new momentum into the stable development of China-US relations,” ministry spokesman Guo Jiakun said.Trump indicated that the agreement would include lowering 20 percent tariffs on Chinese goods related to fentanyl, which has killed tens of thousands of Americans.Of particular importance to Trump — with an eye on US farmers — is whether China will resume purchases of American soybeans.US Treasury Secretary Scott Bessent said after the run-up talks in Malaysia that Beijing had agreed to “substantial” purchases.Another major issue is export controls on rare earths announced by Beijing this month that prompted Trump to call the Xi summit into question.Beijing holds a virtual monopoly on these materials, which are essential for sophisticated electronic components across a range of industries.”There are still many unresolved issues between the two countries, given the complexity and sheer volume of their trade ties,” said Yue Su at The Economist Intelligence Unit.”The easiest wins could include removing port fees for ships or lifting some fentanyl-related tariffs, which fall fully under presidential authority. China, in turn, could agree to purchase more US commodities to show goodwill,” Su told AFP.- Crowning achievement -The meeting is due to take place on the sidelines of an Asia-Pacific Economic Cooperation (APEC) summit of 21 countries in Gyeongju including the leaders of Japan, Australia and Canada.It is the final stop on an Asia tour that saw Trump showered with praise and gifts, including a replica of an ancient Korean golden crown.In Japan, new Prime Minister Sanae Takaichi said she would nominate Trump for the Nobel Peace Prize and gave him a putter and a gold-plated golf ball.However, Trump’s hopes of a re-run of his 2019 meeting with North Korean leader Kim Jong Un at the Demilitarized Zone frontier appear to have dashed.Trump said though that they would meet in the “not too distant future” and that he would like to “straighten out” tensions between North and South Korea.On Thursday, he hailed the military alliance with South Korea as “stronger than ever” and said he had given the green-light for Seoul to build a nuclear powered submarine.- Taiwan surprise -Even if Xi and Trump come to an agreement, it will not bring a halt to their nations’ fierce economic, technological and strategic rivalry.But the Republican leader will be able to flaunt his skills as a negotiator at a time when US households are growing impatient with persistent inflation. A reconciliation in South Korea would also offer Trump the prospect of a lavish visit to China, similar to the one he made during his first term in 2017.One surprise could be if Xi brings up Taiwan, with speculation that Beijing might press Trump to water down US backing for the self-ruled island.Since 1979, Washington has recognised Beijing over Taipei as the sole legitimate Chinese power, even though the United States remains Taiwan’s most powerful ally and its main arms supplier.”I don’t know that we’ll even speak about Taiwan. I’m not sure. He may want to ask about it. There’s not that much to ask about. Taiwan is Taiwan,” Trump told reporters aboard Air Force One.burs-stu/oho/tc

The dollar strengthened Wednesday while Wall Street stocks were mixed after the Federal Reserve indicated its latest interest rate cut might not be repeated in December.After the US central bank announced a quarter percentage-point interest rate cut that had been expected, Fed Chair Jerome Powell told reporters that another decrease in December “is not a foregone conclusion, far from it.”The statement jolted US markets, lifting the dollar and pushing all three US equity briefly into the red.The Nasdaq later recovered, finishing at a fourth straight record behind another gain by artificial intelligence giant Nvidia, which became the first company to reach a $5 trillion market value.The Dow finished modestly lower while the S&P 500 ended flat.Oxford Economics characterized Powell as “hawkish,” predicting that the central bank would “move to the sidelines” and not cut again until March. Powell also indicated in his press conference that the dearth of economic data due to the US government shutdown could also prompt more cautious policy making.The Dow had earlier topped 48,000 points following fresh peaks set in London and some Asian markets as US President Donald Trump voiced optimism on the eve of crunch trade talks with China’s President Xi Jinping.Trump predicted a “great meeting,” while China’s foreign ministry was more cautious, saying that Xi and Trump would have “in-depth” talks on “major issues.”Key matters concern thorny trade matters such as Chinese exports of rare earths and US efforts to bolster US exports of American soybeans to China.Analysts have also seen Nvidia’s latest surge as partly based on hopes Trump may negotiate a resumption of the company’s exports to China.The two leaders are set to meet Thursday in Busan, a southern port city not far from the APEC summit attended by Trump.The European Central Bank and the Bank of Japan are expected to hold interest rates steady this week. Benchmark stocks indices in Tokyo and Seoul each reached record highs Wednesday, while European markets were mixed.After Seoul closed, the United States and South Korea reached an agreement to maintain reciprocal tariffs at 15 percent and to reduce levies on automobiles and auto parts.In company news, shares in UK drugmaker GSK rose more than two percent in London after it raised its full-year guidance on strong sales growth. Shares in Mercedes-Benz rose more than four percent after the company reassured investors it faced no immediate production shutdowns due to microchip shortages, even though third-quarter net profits plunged more than 30 percent due to Trump’s tariff blitz as well as slumping sales in China.US industrial giant Caterpillar surged 11.6 percent after reporting better than expected profits, partly due to strong demand in its energy & transportation business partly related to heavy AI infrastructure investment.- Key figures at around 2020 GMT -New York – Dow: DOWN 0.2 percent at 47,632.00 (close)New York – S&P 500: FLAT at 6,890.59 (close)New York – Nasdaq Composite: UP 0.6 percent at 23,958.47 (close)London – FTSE 100: UP 0.6 percent at 9,756.14 (close)Paris – CAC 40: DOWN 0.2 percent at 8,200.88 (close)Frankfurt – DAX: DOWN 0.6 at 24,124.21 (close)Tokyo – Nikkei 225: UP 2.2 percent at 51,307.65 (close)Hong Kong – Hang Seng Index: Closed for a holidayShanghai – Composite: UP 0.7 percent at 4,016.33 (close)Euro/dollar: DOWN at $1.1595 from $1.1656 on TuesdayPound/dollar: DOWN at $1.3187 from $1.3276Dollar/yen: UP at 152.82 yen from 152.06 yenEuro/pound: UP at 87.94 from 87.80 penceBrent North Sea Crude: UP 0.8 percent at $64.92 per barrelWest Texas Intermediate: UP 0.6 percent at $60.48 per barrelburs-jmb/des

Stock markets hit record highs Wednesday thanks to optimism over US trade deals, the AI sector and an expected interest-rate cut by the US Federal Reserve.The Dow briefly topped 48,000 points as all three of Wall Street’s main indices set record highs when trading started, following fresh peaks set in London and some Asian markets as US President Donald Trump voiced optimism on the eve of crunch talks with China’s President Xi Jinping.Investors are looking ahead to a meeting of the Federal Reserve, which observers expect will unveil a quarter-percentage-point cut to borrowing costs, as well as earnings reports from tech giants Meta, Microsoft and Google-parent Alphabet after trading closes in New York.”Sentiment is as bullish as it can be heading into what could be one of the most consequential two-day periods for markets this quarter,” said City Index and FOREX.com analyst Fawad Razaqzada.The European Central Bank and the Bank of Japan are expected to hold interest rates steady this week. Ahead of meeting Xi, Trump indicated that a trade deal had been reached with South Korea’s President Lee Jae Myung.Ahead of his arrival in South Korea, Trump told reporters he expects “a lot of problems are going to be solved” during his first in-person discussion with Xi since returning to the White House this year.The two leaders are set to meet Thursday in Busan, a southern port city not far from the APEC summit attended by Trump.Geopolitical hopes have added to an already jubilant atmosphere on Wall Street, with artificial intelligence giant Nvidia in particular benefitting from comments by Trump that fuelled speculation it might be allowed to sell chips in China.Trump’s “remarks sent Nvidia soaring to a $5 trillion company and propelled the S&P 500, Nasdaq 100 and Dow Jones to new record levels,” said Razaqzada.”In a market already high on AI-fuelled enthusiasm, that was all investors needed to keep the rally going,” he added.After gaining five percent on Tuesday, Nvidia shares rose further on Wednesday, helping it to become the world’s first company with a market capitalisation of $5 trillion.Benchmark stocks indices in Tokyo and Seoul each reached record highs Wednesday.After Seoul closed, the United States and South Korea reached an agreement to maintain reciprocal tariffs at 15 percent and to reduce levies on automobiles and auto parts.Taipei gained more than one percent on the day and Shanghai tracked moderate gains, while Hong Kong was closed for a public holiday.In company news, shares in UK drugmaker GSK rose more than two percent in London after it raised its full-year guidance on strong sales growth. Shares in Mercedes-Benz rose more than four percent after the company reassured investors it faced no immediate production shutdowns due to microchip shortages, even though third-quarter net profits plunged more than 30 percent due to Trump’s tariff blitz as well as slumping sales in China.The price of copper reached a record high Wednesday, with the metal boosted also by tight supply concerns.- Key figures at around 1630 GMT -New York – Dow: UP 0.6 percent at 47,980.63 pointsNew York – S&P 500: UP 0.3 percent at 6,907.35New York – Nasdaq Composite: UP 0.5 percent at 23,952.23London – FTSE 100: UP 0.6 percent at 9,756.14 (close)Paris – CAC 40: DOWN 0.2 percent at 8,200.88 (close)Frankfurt – DAX: DOWN 0.6 at 24,124.21 (close)Tokyo – Nikkei 225: UP 2.2 percent at 51,307.65 (close)Hong Kong – Hang Seng Index: Closed for a holidayShanghai – Composite: UP 0.7 percent at 4,016.33 (close)Euro/dollar: UP at $1.1662 from $1.1656 on TuesdayPound/dollar: DOWN at $1.3238 from $1.3336Dollar/yen: UP at 152.07 yen from 152.06 yenEuro/pound: UP at 88.10 from 87.80 penceBrent North Sea Crude: UP 1.2 percent at $64.62 per barrelWest Texas Intermediate: UP 1.3 percent at $60.93 per barrelburs-rl/rlp