Asia stocks climb as Trump-Xi meeting news eases trade jitters; Japan CPI in focus

Investing.com-- Asian stocks rose broadly on Friday, led by gains in technology shares, as news that U.S. President Donald Trump will meet Chinese counterpart Xi Jinping next week helped ease trade tensions.

Investors also digested Japan’s latest inflation and factory activity data while awaiting key U.S. inflation numbers later in the day.

Regional markets tracked a higher close on Wall Street overnight, where upbeat corporate earnings -- including from tech giant Intel Corporation (NASDAQ:INTC) -- bolstered risk appetite.

U.S. stock futures ticked higher in Asian trading as of 02:35 GMT.

Trump-Xi meeting confirmation eases trade tensions

The White House confirmed on Thursday that Trump will meet Xi in South Korea during next week’s APEC summit, a development that buoyed markets after recent heightened U.S.–China trade friction.

The planned meeting follows Washington’s threat to impose 100% tariffs on certain Chinese goods and Beijing’s introduction of export curbs on rare earth materials. The prospect of renewed dialogue lifted investor hopes for de-escalation in trade disputes that have clouded the global outlook.

South Korea’s KOSPI led regional gains, rising over 2% to hit a fresh record high of 3,924.83 points. Chipmaking heavyweight Samsung Electronics (KS:005930) rose 2%, while SK Hynix (KS:000660) shares surged more than 6%.

Chinese equities gained after the Communist Party unveiled a new five-year economic plan that emphasized advanced manufacturing, technological self-reliance, and stronger domestic demand.

The policy framework reinforced optimism that Beijing is committed to sustaining growth through structural reform and innovation.

China’s blue chip Shanghai Shenzhen CSI 300 rose 0.5%, while the Shanghai Composite index gained 0.3%.

Hong Kong’s Hang Seng index advanced 0.6%, with Hang Seng TECH sub-index jumping 1.5%.

Japan CPI, PMI in focus; US inflation data on tap

In Japan, economic data painted a mixed picture. Data showed that core consumer prices rose 2.9% in September from a year earlier, while the broader “core-core” measure -- which excludes both food and energy -- climbed 3.0%.

The readings remain above the Bank of Japan’s 2% target, fueling expectations that policymakers may further discuss an eventual tightening.

In other news, Japan’s factory activity for October slipped to its weakest level in 19 months, signaling continued contraction in factory output. The services PMI also eased, but remained strong amid robust domestic demand.

The datapoints come after Sanae Takaichi was sworn in as Japan’s new prime minister earlier this week, with her dovish policy stance drawing investor attention.

Her government is reportedly preparing a large stimulus package, targeting inflation relief, high-tech investment, and national security.

Japan’s Nikkei 225 index jumped 1.3% on Friday, while the broader TOPIX index rose 0.6%.

Elsewhere, Australia’s S&P/ASX 200 was largely steady, while Singapore’s Straits Times Index rose 0.3%.

Futures tied to India’s Nifty 50 edged higher before market open.

Investors’ attention now turns to the U.S. Consumer Price Index data due later Friday. The release will be crucial in shaping expectations for the Federal Reserve’s policy path ahead of the central bank’s rate decision next week.