Asian markets fall on US-China jitters as leaders meet

Asian markets fell on Thursday as jitters around a high-stakes summit between US President Donald Trump and Chinese leader Xi Jinping hit equities.

Shanghai closed 1.2 percent down, shrugging off US Treasury Secretary Scott Bessent's announcement that the superpowers had agreed to extend a trade truce by two months.

The simmering trade war between the world's top two economies is a key concern. Both sides have maintained a tariff truce for nearly a year, but they have yet to secure a lasting agreement.

The "economic detente" will now extend beyond its November 10 deadline to January 10, Bessent said.

However, hopes of business deals have been dimmed by the fact that there are no Chinese CEOs in Xi's delegation, two sources told AFP.

In contrast, top US tech bosses -- including the leaders of major artificial intelligence companies -- are set to attend a banquet for Xi on Thursday.

Pre-summit talks between Bessent and his Chinese counterpart He Lifeng included discussions over creating a communication channel for AI concerns as warnings swirled that the technology risks wiping out humanity.

"Market participants are looking for signs of cooperation (however feigned) in managing the risks of AI without raising the regulatory risk to the space," said Kyle Rodda, senior financial market analyst at Capital.com.

- Oil jumps -

Trump said the Iran war would be on the agenda at the talks, despite having earlier played down reports that Beijing was supplying Tehran with intelligence as the conflict drags on.

Oil prices jumped in Asia's afternoon trade, with the international benchmark, Brent crude, surging three percent to $106.24 per barrel, as uncertainty swirled around the seven-month conflict.

It came a day after world leaders at the UN General Assembly offered little to suggest progress in ending the turmoil in the Middle East.

Hopes for a deal to get Gulf oil and gas flowing freely through the Strait of Hormuz as global leaders gathered in New York had sent oil prices down in recent sessions.

Hong Kong closed 0.3 percent down, with Sydney, Taipei, Jakarta, Bangkok, Manila and Singapore also in the red. South Korea's Kospi was closed for a holiday.

Japan's Nikkei closed 0.8 percent up on its first day back from a three-day break.

Tokyo's gains came as the benchmark 10-year JGB yield rose to 3.055 percent, hitting a 30-year high, after US bond yields jumped.

The benchmark US 10-year Treasury yield rose to 5.11 percent -- its highest level since 2007.

The US Federal Reserve lifted borrowing costs last week, providing relief to traders concerned that policymakers were not moving quickly enough to address a spike in inflation.

London was flat, with Paris and Frankfurt both down.

India's largest stock exchange operator, the National Stock Exchange, recorded a subdued trading debut, opening around one percent higher than its issue price after raising $2.35 billion in the country's second-biggest initial public offering.

The NSE, which handles the vast majority of domestic equities trading, had been one of India's most anticipated listings this year and came after a decade-long wait to go public.

- Key figures at around 0815 GMT -

West Texas Intermediate: UP 1.4 percent at $93.41 per barrel

Brent North Sea Crude: UP 3 percent at $106.24 per barrel

Hong Kong - Hang Seng Index: DOWN 0.3 percent at 24,761.13 (close)

Shanghai - Composite: DOWN 1.2 percent at 3,888.37 (close)

Tokyo - Nikkei 225: UP 0.8 percent at 65,513.99 (close)

London - FTSE 100: FLAT at 10,710.78

Dollar/yen: UP at 158.34 from 158.29 on Wednesday

Euro/dollar: UP at $1.1389 from $1.1385

Pound/dollar: UP at $1.3244 from $1.3242

Euro/pound: FLAT at 85.97 pence