Asian stocks are lower after South Korea's Kospi hits records, as Trump wraps up Beijing trip

Asian stock markets mostly retreated on Friday, reversing earlier gains as investors weighed developments from U.S. President Donald Trump’s visit to Beijing and rising geopolitical risks in Iran. South Korea’s Kospi lost 3.2% after reaching an all-time high of 8,046.78, driven by AI-driven rallies but later correcting. Tokyo’s Nikkei 225 fell 1.2% to 61,880.04, while Hong Kong’s Hang Seng dipped 0.9% to 26,145.66, though Shanghai’s Composite edged up 0.1%. Trump concluded his Beijing trip with meetings on U.S.-China trade, economic cooperation, and Taiwan, though analysts warned skepticism was warranted after past deals failed to materialize. The White House confirmed both sides agreed to keep the Strait of Hormuz open for oil transit, amid attacks on ships near Oman and stalled U.S.-Iran talks. Oil prices surged, with Brent crude at $107.06 and U.S. benchmark crude at $102.56, up from pre-war levels around $70. Wall Street had earlier hit records, with the S&P 500 rising 0.8% to 7,501.24 and the Dow Jones crossing 50,000 for the first time since the Iran conflict began. Nvidia climbed 4.4% on hopes of Chinese sales updates, while Cisco Systems jumped 13.4% after reporting better-than-expected results and cutting fewer jobs than expected. The U.S. dollar strengthened against the yen, hitting 158.50, while the euro fell to $1.1651. Investors also reacted to Trump’s claim that China could resume U.S. oil purchases, over a year after Beijing halted imports following trade tariffs. Analysts from Capital Economics cautioned optimism over U.S.-China trade deals, citing past failures to deliver on promises. Meanwhile, global energy flows remained constrained by the Strait of Hormuz’s closure and a U.S.-imposed blockade on Iranian ports.