Asian shares mixed amid speculation of Trump’s visits

Asian shares were mixed on Tuesday, with Chinese markets gaining as investors watch to see what might come of a planned meeting between President Donald Trump and China’s top leader.

Hong Kong’s Hang Seng edged 0.1 per cent higher to 26,451.08 and the Shanghai Composite index gained 0.2 per cent to 4,005.44, its highest level in a decade.

Trump has suggested he expects to forge another trade agreement with Chinese President Xi Jinping when they meet on the sidelines of a Pacific Rim summit in South Korea later this week. That could alleviate trade tensions that have roiled world markets and disrupted business since Trump’s return to the White House.

Japan’s benchmark Nikkei 225 lost 0.2 per cent in early trading to 50,419.96, falling back after hitting record highs since Sanae Takaichi became prime minister, the nation’s first woman leader. On Tuesday, Trump is meeting with Takaichi, visiting a US military base and then meeting with business leaders in Tokyo.

Both sides are reaffirming their security alliance and Japan is promising to abide by Trump’s demands for more investments, and bigger role in its own defence and increased imports from the US.

“So Asia opens not with fireworks, but with an uneasy calm — a market breath half held. Traders aren’t chasing the rumour this time; they’re watching, weighing, waiting for something real to sign,” said Stephen Innes.