Asian stocks fell on Tuesday amid mixed signals over upcoming US-China trade talks, with doubts lingering over the prospects of a lasting deal. Early gains for MSCI's Asia-Pacific index outside Japan faded, and S&P 500 futures traded flat following Monday's rebound triggered by US Treasury Secretary Scott Bessent's comments that President Donald Trump remains on track to meet Chinese leader Xi Jinping in South Korea later this month. Wall Street ended up 2.2 per cent higher overnight, led by chipmakers, after Trump struck a more conciliatory tone on trade. Global equities had tumbled on Friday following Trump's announcement of 100 per cent tariffs on China, but the selloff eased once he moderated his rhetoric. Citi analysts said they do not expect a significant escalation in trade tensions, noting China may hold the bargaining power. Still, a Chinese commerce ministry spokesperson warned that the US cannot seek talks while issuing threats, keeping markets cautious. The US and China will also start imposing port fees on shipping firms on Tuesday, adding another layer of tension to trade relations. In Asia, Hong Kong's Hang Seng Index fell 0.4 per cent, and China's CSI 300 slipped 0.1 per cent. Taiwan led gains with the Taiex rising 0.8 per cent as TSMC hit a record after announcing a partnership with Broadcom to produce AI processors. South Korea's Kospi gained 0.6 per cent following Samsung Electronics' projection of a 32 per cent rise in third-quarter operating profit. Japan's Nikkei dropped 1.2 per cent as markets reopened after a holiday. The US dollar was little changed at 152.31 yen, while the dollar index fell 0.1 per cent to 99.246. Traders continue to price in near certainty of a 25-basis-point Federal Reserve rate cut at the October 29 meeting. Attribution: Reuters Subediting: Y.Yasser
