Asian Markets Wrap | Mixed sentiments ahead of Trump-Xi Meeting.

14 May 2026 , 08:14 PM

INDEX SNAPSHOT

• SSE Composite (China) — 4,177.92 | -1.52%
• Hang Seng (Hong Kong) — 26,389.05 | 0% 
• Nikkei 225 (Japan) — 62,654.05 | -0.98%
• KOSPI (South Korea) — 7,981.41 | +1.75% 
• Nifty 50 (India) — 23,689.60 | +1.18%
  

China | SSE Composite 4,177.92 | -1.52%

The Shanghai Composite slipped as investors monitored the Trump-Xi summit with caution, with Cambricon Technologies, Luxshare Precision, and Shennan Circuits among the session’s notable losers.

Hong Kong | Hang Seng 26,389.05 | 0%

The Hang Seng ended flat as investors closely tracked the Trump-Xi summit, with markets waiting on its outcome before taking fresh positions on trade, AI, and Iran-related developments.

Japan | Nikkei 225 62,654.05 | -0.98%

The Nikkei touched a high of 63,700 before selling pressure emerged in the afternoon, with Fujikura leading the decline after its profit forecast came in well below market expectations, dragging the index to close 618 points lower.

South Korea | KOSPI 7,981.41 | +1.75%

The KOSPI set a record closing high for the second straight session, with Samsung Electronics surging 4.23% to close at 296,000 won — within touching distance of the 300,000-won mark — as KB Securities became the first Korean brokerage to set a year-end KOSPI target of 10,500.

India | Nifty 50 23,689.60 | +1.18%

The Nifty closed firmly higher, led by pharma stocks which gained 2.74%, while Nifty IT was the key drag, declining 1.99% for a second consecutive session.

Key News and Impact on India

1. Trump and Xi Open Beijing Summit — Warm Tone, Limited Substance So Far

• Trump and Xi met in Beijing on Thursday, with markets pricing in the possibility that the summit could unlock diplomatic momentum on the Iran front, reducing the geopolitical premium that has weighed on global sentiment.
• The meeting was expected to cover a broad range of issues including the Iran conflict, trade and tariffs, AI, and Taiwan. Trump was also reportedly set to urge Beijing to use its ties with Tehran to help reopen the Strait of Hormuz.
• Both sides confirmed preparatory trade talks had yielded broadly positive results, though no binding agreements were announced on day one
• China’s offshore yuan traded at its strongest level against the dollar since February 2023, seen as a signal of goodwill ahead of the summit

Impact on India: A calmer US-China tone reduces the risk of a sudden pullback in FII flows from emerging markets. However, any easing of technology restrictions for China — particularly around advanced AI chips — would make India’s pitch as an alternative investment destination harder to sustain. The technology discussions will be the most consequential part of this summit for India.

 

2. KOSPI Closes at Second Consecutive Record as Samsung Nears ₩300,000 (INR19,233)

• The KOSPI rose 137.40 points, or 1.75%, to close at a record 7,981.41 — its second straight all-time high
• Samsung Electronics gained 4.23% to close at 296,000 won, touching 299,500 intraday — just shy of the historic 300,000-won mark
• KB Securities raised its year-end KOSPI target to 10,500, projecting Kospi-listed company operating profits to nearly triple this year, with Samsung and SK Hynix’s combined profits forecast to jump from 91 trillion won last year to 630 trillion won this year
• Samsung and SK Hynix’s combined weight in the KOSPI 200 crossed 50% for the first time ever, highlighting the index’s heavy reliance on a narrow group of semiconductor winners

Impact on India: South Korea’s semiconductor-driven rally shows how powerfully AI hardware demand is reshaping global capital flows. Indian IT services firms with exposure to AI infrastructure deployment remain indirect beneficiaries, but India’s own chip manufacturing story still needs years of execution before it competes at this level.

 

3. Nikkei Hits Intraday Record Before Fujikura Triggers a Sharp Afternoon Selloff

• The Nikkei briefly surged past 63,700 to set a new all-time intraday record before sellers took control in the afternoon session
• Fujikura was the session’s worst performer, falling 19.10%, after its operating profit forecast for the fiscal year ending March 2027 came in at 211 billion yen — well below market consensus of 263.7 billion yen
• Falling stocks outnumbered advancing ones by 2,340 to 1,259 on the Tokyo Stock Exchange, reflecting how quickly the morning’s optimism turned
• Japan’s government was reported to be weighing a supplementary budget to shield households from elevated fuel costs, pushing longer-dated government bond yields higher on debt issuance concerns

Impact on India: Despite the intraday reversal, Japan’s equity market sitting near all-time highs reflects broad institutional confidence in Asia. Japanese capital has grown increasingly active in Indian equities and infrastructure, and sustained domestic market strength tends to support continued outbound investment flows into India.

 

4. Shanghai Falls as Onshore Investors Demand More Than Diplomatic Goodwill

• The Shanghai Composite fell around 1.5% even as the Trump-Xi summit got underway, with mainland investors staying cautious despite the warm opening tone from both sides
• Notable losers included Cambricon Technologies (-2.2%), Luxshare Precision Industry (-4.1%), and Shennan Circuits (-4.0%)
• The gap between Hong Kong’s flat close and Shanghai’s 1.5% decline showed a clear divide — offshore investors held steady while domestic investors waited for concrete policy outcomes
• China’s foreign ministry stated that balanced talks were the only viable path forward, but markets treated this as messaging rather than a signal of real concessions

Impact on India: Shanghai’s refusal to rally on summit optimism alone is a reminder that US-China tensions have deep structural roots. For India, a sustained period of managed US-China friction — rather than open conflict or full normalisation — remains the most favourable backdrop for attracting manufacturing and supply chain investment being redirected away from China.

 

5. India Rises on Summit Hopes Despite IT Drag and Elevated Oil

• The Nifty 50 closed at 23,689.60, up 1.18%, with Nifty Pharma leading all sectors with a 2.74% gain
• Cipla was the top Nifty gainer, surging 7.11%, while Adani Enterprises and Adani Ports also saw strong buying
• Nifty IT fell 1.99%, declining for a second straight session, weighed down by continued global concerns around the pace of discretionary tech spending
• Brent crude stayed elevated above $106 a barrel, keeping the oil import bill in focus and limiting how far the rally could extend

Impact on India: Thursday’s session showed India’s market has selective strength — pharma, banking, and infrastructure absorbing global uncertainty well, while IT remains under pressure. Sustained oil above $100 a barrel is the key risk to watch: it widens the current account deficit, adds to domestic inflation, and limits the RBI’s room to ease further.