South Korea's benchmark Kospi index reached a new record high of over 8,000, rising more than 0.6% on Friday, driven by investor optimism amid ongoing high-stakes discussions between U.S. President Donald Trump and Chinese President Xi Jinping. In contrast, the small-cap Kosdaq index fell by 0.4%.
Other Asian markets also saw gains, with Japan's Nikkei 225 increasing by 0.89% and the Topix rising by 1.18%. Australia's S&P/ASX 200 gained 0.42%, while Hong Kong's Hang Seng index futures were slightly lower at 26,341, just below the previous close of 26,389.04.
The talks in Beijing, which included prominent American business leaders like Tesla's Elon Musk and Nvidia's Jensen Huang, have heightened market interest. However, President Xi cautioned that mishandling the sensitive issue of Taiwan independence could lead to significant tensions between the U.S. and China, potentially jeopardizing their overall relationship.
In the U.S., stock futures showed little movement, with Dow futures down by 10 points and S&P 500 futures dipping 0.02%. The Dow Jones Industrial Average had a strong performance, closing up 370.26 points, or 0.75%, at 50,063.46, following positive earnings from Cisco Systems. The S&P 500 and Nasdaq Composite also reached new all-time highs, closing at 7,501.24 and 26,635.22, respectively.
This overall positive sentiment in the markets reflects the impact of the ongoing negotiations between the two largest economies in the world