Trade Tensions Remain After Xi-Trump Call

China and Hong Kong stocks remained steady as a Trump-Xi call left trade tensions unresolved. The lack of clarity in their discussion affected market reactions, with Chinese tech ADRs showing minimal change. Future tariff talks remain on the horizon, with headline risks persisting.

On Friday, China and Hong Kong markets experienced minimal shifts, following a call between U.S. President Donald Trump and China's leader, Xi Jinping, that failed to provide clarity on ongoing trade tensions. The blue-chip CSI300 Index dropped by 0.1%, while Hong Kong's Hang Seng witnessed a slight rise of 0.1%.

The rare discussion between the two leaders, which focused on trade tensions and the battle over critical minerals, concluded without resolving key issues. Analysts, including those from UBS, noted the low market reaction, attributing it to the lack of substantial details aside from arranging future tariff talks.

Amid persistent tariff disputes, the risk of headline volatility continues to loom over the financial markets. Following the call, Chinese tech ADRs remained relatively unchanged, climbing merely 0.85% during New York's overnight session.