South Korea’s Kospi Retreats as Trump-Xi Summit Enters Day Two

CNBC reported Friday that Asia-Pacific markets broadly declined as investors monitored the second day of the Trump-Xi summit in Beijing.

Kospi Gives Back Record Territory

South Korea’s benchmark Kospi shed 1.35% after briefly trading above the 8,000 mark for the first time. The small-cap Kosdaq dropped a sharper 2%. Japan’s Nikkei 225 fell roughly 0.9%, though the broader Topix held flat. Australia’s S&P/ASX 200 eased 0.25%, and Hong Kong’s Hang Seng slipped 0.39%. China’s CSI 300 opened near unchanged.

Index heavyweight Samsung Electronics fell around 1% after its labor union confirmed the company had proposed resuming wage negotiations without preconditions. The union signaled readiness to return to talks after early June, with its leadership noting workers would continue to exercise constitutional rights.

Also Read: Nvidia’s Jensen Huang Joins Trump’s Beijing Delegation Amid Chip Export Talks

Background: A Record Run Built on AI Optimism

The Kospi’s recent surge has been remarkable. The index crossed 7,000 for the first time on May 5, lifted largely by Samsung Electronics hitting a trillion-dollar market capitalization. AI and semiconductor enthusiasm drove much of that momentum. However, analysts have flagged growing concentration risk inside the index. According to Manulife Investment Management, Samsung and chipmaker SK Hynix together accounted for a record 42.2% of the Kospi’s total weight this month. That level of concentration amplifies both upside moves and pullbacks.

Also Read: Samsung Electronics Crosses $1 Trillion Market Cap for First Time

Xi’s Taiwan Warning Clouds the Summit

Early optimism that the Beijing meetings could ease trade and technology export restrictions gave markets a brief lift. That sentiment faded after Chinese President Xi Jinping delivered a pointed message to U.S. President Donald Trump on Thursday. Xi cautioned that mishandling Taiwan independence could push both nations toward “clashes and even conflicts.” He added that failure to manage the issue carefully could place the entire bilateral relationship at serious risk. Trump traveled to Beijing on Wednesday alongside a U.S. business delegation that included Tesla CEO Elon Musk and Nvidia CEO Jensen Huang, underscoring the tech and trade dimensions of the summit.

Wall Street Holds Near Records Overnight

American equity markets closed at fresh highs ahead of the Asia session. The Dow Jones Industrial Average reclaimed the 50,000 level, rising around 370 points to close at 50,063, after Cisco Systems posted stronger-than-expected earnings. The S&P 500 gained 0.77% to settle at 7,501.24, and the Nasdaq Composite added 0.88% to 26,635.22. Both the S&P 500 and Nasdaq registered record intraday highs and record closes. U.S. futures were little changed in overnight trading.

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