Asian Markets Mixed Amid Trump-Xi Meeting Anticipation and Fed Rate Decision

Asian stock markets showed mixed performance amid cautious investor sentiment ahead of the U.S. Federal Reserve's expected interest rate cut and a highly anticipated meeting between President Donald Trump and China's President Xi Jinping. Japan's Nikkei 225 reached record highs recently but dipped slightly as investors awaited developments from Trump's diplomatic engagements in the region, including meetings with Japan's Prime Minister Sanae Takaichi and business leaders to strengthen security and economic ties. Chinese markets experienced modest gains, with the Shanghai Composite hitting a decade-high, fueled by optimism over a potential trade agreement that could ease ongoing tensions. Australian and South Korean markets declined, reflecting a cautious stance despite positive economic indicators such as Australia's rising inflation and South Korea's strong quarterly growth. Market participants broadly refrained from speculative moves, focusing instead on official announcements from the Fed and outcomes from Trump's diplomatic visits. Overall, investor focus remains on the interplay of U.S. monetary policy and international trade diplomacy to guide future market directions.