Global financial markets are closely watching today's (24 Sep 2026 GMT+7) meeting between U.S. President Donald Trump and Chinese President Xi Jinping, as relations between the two powers remain delicate, involving trade, technology, and supply chains.
The mood ahead of the meeting has improved, especially after the U.S. and China agreed to extend their trade truce until 10 Jan 2027 GMT+7, from the original end date of 10 Nov this year.
For investors, the key focus is on post-meeting details, including tariffs, export controls on AI chips and technology, as well as rare earth minerals—all directly tied to profits of companies in technology, semiconductors, automotive industries, and global supply chains.
AP News reported that Xi Jinping arrived in Washington for his first state-level visit in over 10 years, with Trump personally welcoming him at Joint Base Andrews Air Force Base.
Today (24 Sep), the two leaders will hold closed-door talks on critical issues before attending a reception with tech executives such as Jensen Huang and Elon Musk. Despite a cordial appearance, the intense competition between the countries means no major deal is expected; the main aim is to maintain smooth relations.
The hottest topic is AI: the U.S. has imposed the strictest export controls on AI chips to China and accuses Chinese developers of appropriating U.S. AI model capabilities, while Trump insists development will not be slowed.
Additionally, both sides have blacklisted each other's companies—for example, the U.S. Department of Defense bans Alibaba, BYD, and Baidu from defense contracts, while China has responded by restricting drone exports. On taxes, the Trump administration seeks alternative ways to increase levies after the Supreme Court struck down previous tariffs.
Political issues also factor in, such as Iran and Taiwan. Markets are not only watching whether the leaders will shake hands but also how much easing occurs on each front.
This meeting between the two global powers is significant not only for global trade direction but also as a key variable influencing stock movements across sectors, especially on "trade - chips and AI - rare earth minerals."
Outcomes in each area may boost different stocks, while investors should be wary of profit-taking if results fall short of market hopes.
Kasikorn Securities analysts view the extension of the trade truce until 10 Jan 2027 GMT+7 positively for market sentiment and beneficial to stocks linked to global trade, especially electronics, petrochemicals, and industrial estates, though gains may be limited without concrete agreements.
Asia Plus Research notes that some positive expectations are already priced in from the Trump-Xi meeting. If progress is less than expected, a Sell on Fact could occur.
They outline three scenarios:
1. Trade truce extension: Positive for China Tech and Consumption sectors. Beneficiaries include BABA80, JD80, TENCENT80, BIDU80, and HKTECH13. Chinese EV stocks may see limited gains due to ongoing U.S. resistance to opening markets for Chinese manufacturers.
2. Easing of chip and AI restrictions: If the U.S. relaxes chip and AI export controls, it would benefit the semiconductor sector by reducing geopolitical discounts and boosting sales and supply chain opportunities, positively impacting NVDA80, AMD80, QCOM23, TSEMI23, and ASML01.
3. Relaxation of rare earth restrictions: This would benefit industrial, automotive, and technology supply chain groups by lowering raw material risks, but could pressure U.S. rare earth producers, with MP23 potentially affected.
Therefore, the market's focus is not just on whether Trump and Xi reach a major deal, but on the specifics and degree of easing in various measures post-meeting, which will determine if the positive sentiment translates into broader investment gains.
Sources: AP, abcnews, Asia Plus, Kasikorn Securities
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