China, Hong Kong shares slip
China and Hong Kong stocks extended losses on Thursday as investors remained sceptical that a meeting between US President Donald Trump and Chinese President Xi Jinping in Washington would produce a broader breakthrough.
China’s blue-chip CSI300 Index fell 1.3 percent by the lunch break, while the Shanghai Composite Index lost roughly 1 percent.
Hong Kong’s benchmark Hang Seng Index was down 0.5 percent.
Trump welcomed Xi to Washington on Wednesday for a three-day visit that will test relations between the two superpowers.
Xi’s first trip to the US in nearly three years was not expected to yield major breakthroughs, but Treasury Secretary Scott Bessent said the two countries agreed to extend trade truce by two months.
The extension is “shorter than market expectations” for a one-year rollover but nonetheless helps preserve stability in the bilateral relationship, UBS said in a sales note.
Also weighing on sentiment was the absence of a delegation of Chinese business leaders during Xi’s visit, which Beijing had sought to bring for meetings with Trump, Reuters reported, citing sources.
Saudi Arabia’s market regulator proposes tighter rules
Saudi Arabia’s market regulator has proposed tighter rules for initial public offerings, as it seeks to strengthen a market hit by a sharp slowdown in listings, according to a statement released this week.
Saudi Arabia’s IPO market has slowed significantly in 2026 due to an escalating Middle East conflict and the proposed rules would strengthen investor protections and market transparency, while shifting more of the execution and funding risk associated with IPOs onto institutional investors and underwriters.
The rules are aimed at boosting confidence in Saudi capital markets by increasing transparency and strengthening the IPO framework, the Capital Market Authority said.
Saudi Arabia’s IPO market has struggled to bounce back after a post-pandemic rush, with Mutlaq Al-Ghowairi Contracting Company calling off plans to list in what would have been one of the region’s largest flotations this year.
Indian stocks post worst day in 10 weeks
Indian shares fell the most in ten weeks on Thursday as surging oil prices stoked inflation concerns and weighed on sentiment, with financials leading the decline on insurance commission cap concerns.
The National Stock Exchange rose 1.8 percent in its debut trading session, opening at a modest 0.8 percent premium to the stock’s issue price.
The Nifty 50 fell 1.64 percent to 23,063.10, while the BSE Sensex shed 1.67 percent to 73,580.54, both recording the steepest single-session drop since July 8.
They were down 1.64 percent and 1.48 percent, ahead of the closing auction session which also marked the weekly BSE derivatives expiry.
Brent crude climbed 2.4 percent to $105.6 a barrel. Iranian President Masoud Pezeshkian told the UN General Assembly on Wednesday that Tehran would never surrender to US pressure, while diplomatic talks between the US and Iran showed little sign of progress.
“Crude remains a key variable for India, and the spike in oil prices after briefly slipping below $100 revives supply concerns just as domestic markets found its footing,” said Hemang Gor, senior research analyst of derivatives and technical research at Axis Direct.
Australian stocks hit over 3-month low
Australian shares hit a more than three-month low on Thursday, with most sectors trading in negative territory, as a sharp rise in oil prices revived concerns that inflation could stay persistent and keep monetary policy tight.
The S&P/ASX 200 index was down 1.2 percent at 8,658.10, as of 0010 GMT.
The index fell as much as 1.4 percent earlier in the session, hitting its lowest since June 12.
Crude oil prices surged nearly 4 percent overnight after tensions between Iran and the United States flared anew, undermining hopes for an imminent easing of Middle East tensions.
Australia has been grappling with rising inflation, with fuel costs surging after the Middle East conflict drove up global oil prices.
The Reserve Bank has increased its cash rate by 75 basis points in total so far this year and has warned that rates may need to rise again to rein in inflation.
Market participants will closely watch monthly employment data due later in the day, the last major economic report before the central bank’s policy meeting next week.
Adding to the subdued sentiment, yields on short-term and long-term government bonds surged. Higher rates can weigh on equities both by raising the cost of financing corporate investment and by luring buyers back into the bond market.
Japan’s Nikkei gains
Japan’s Nikkei average rose on Thursday in a holiday-shortened week as CPU-related shares jumped after Meta CEO Mark Zuckerberg unveiled a small handheld gadget called Meta Charm, fuelling demand for key computer components.
The Nikkei was up 1.33 percent at 65,883.41 by the midday break.
The broader Topix edged up 0.12 percent to 4,096.01.
Markets were closed until Wednesday due to public holidays. Shares of Ibiden, a component maker of CPUs (central processing units), jumped 15.47 percent after Meta Platforms unveiled Meta Charm, a device designed to use its new Muse AI assistant.
The announcement lifted shares of other CPU-related companies, said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.
Socionext, Meiko Electronic and Ushio Inc jumped more than 10 percent each, making them, along with Ibiden, four of the top five gainers on the Tokyo Stock Exchange’s prime market.
Chip-testing equipment maker Advantest rose 4.09 percent, providing the biggest boost to the Nikkei.
SoftBank Group edged up 0.52 percent.
“In recent sessions, chip-related shares tend to withstand rising yields,” said Shimada.
Japan’s 10-year government bond yield rose to 3.055 percent on Thursday, its highest point since August 1996, following a selloff of US Treasuries.
The market also weighed inflation worries as the yen lost ground to the dollar overnight.