China Stocks Fall After Summit Delivers Little
Chinese stocks came under heavy pressure. FXI, KWEB, PDD, and Alibaba (BABA) all fell after a rough night for Hong Kong shares. The drop followed a Trump-Xi summit that produced no major results and no joint statement, though expectations for any breakthrough were already very low.
The main outcome was a small extension of the trade truce, giving both sides more time until January. Xi restated China's position on Taiwan and said the US and China should work together to stop the misuse of AI. The event was heavy on ceremony and light on policy. Still, markets took some comfort in short-term stability for now.
Yen Strengthens on Tokyo Warnings
The Japanese yen strengthened after official talk from Tokyo. Authorities revealed concern about the weak currency that was raised during a meeting between Prime Minister Sanae Takaichi and President Trump earlier in the week. The detailed account shows Japan and the US share worry over the yen's slide since a rare joint intervention a couple of months ago.
The comments lifted the yen against the dollar after it had drifted close to the 160 level again. That level is closely watched, since it has been the line where Tokyo has stepped in before. The pair traded around 157 today.
Busy Data and Earnings Week Ahead
Next week brings heavy top-tier economic data: JOLTS, ADP, and the jobs report on Friday, plus PCE, the Fed's preferred inflation gauge. Expect plenty of Fed speakers, ISM manufacturing PMI (flagged as a big one), and consumer confidence.
On earnings, two big names report. Micron (MU) is a major test for the tech trade, which held up well this week, especially across semiconductor chip stocks. Nike (NKE) also reports; analysts, including one today, say its turnaround is still taking longer than expected.
