Asian shares flat on potential China-U.S. trade deal

MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.1%

Asian shares consolidated recent hefty gains on Tuesday as hopes for an easing in global trade tensions kept risk appetites keen, while the bull run in tech stocks counted on a bumper round of big-cap earnings this week.

Several Asian share markets have also hit all-time highs and were overdue a breather. The Nikkei dropped 0.2%, having soared 2.5% on Monday as a rally in tech lifted it to gains of around 27% so far this year.

South Korean stocks slid 1.4%, giving back just some of Monday’s 2.6% jump. Sentiment was aided by data showing the economy outpaced forecasts in the third quarter, led by strength in consumption and exports.

MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.1%, while Chinese blue chips were little changed.

Meanwhile, safe-haven gold stood near $4,000 an ounce, as a decline of 9% in five sessions squeezed leveraged money out of a very crowded trade.

What began as a price rise supported by fundamentals now looks driven by retail enthusiasm, said Neil Shearing, group chief economist at Capital Economics.

And with prices still at record highs in real terms, the next big move in gold is more likely to be down than up, he said. Indeed, our new forecast is that the price will fall to $3,500/oz by the end of 2026, he added.

In related news, Japan’s new Prime Minister Sanae Takaichi met U.S. President Donald Trump in Tokyo to discuss defence ties, trade and a package of U.S. investments in a $550 billion deal struck earlier this year.

EUROSTOXX 50 futures and DAX futures held steady, as did S&P 500 futures and Nasdaq futures.