Trump and China’s Xi Strike Rare Earths & Tariff Deal as Global Markets React

China and the U.S trade deal

• U.S. President Trump and Chinese President Xi Jinping reached a trade deal.

• China will start buying soybeans and reopen rare-earth mineral exports, while the U.S. will reduce tariffs.

• Asian markets dipped following the U.S Trump and China's Xi meeting, while global markets reacted mixed.

Trade Breakthrough Between Trump and China’s Xi

Asian markets traded between gains and losses on Thursday after U.S. President Donald Trump said he reached an agreement with Chinese President Xi Jinping on rare-earth exports, soybean purchases, and tariff adjustments.

Trump said the U.S. would reduce specific tariffs on Chinese imports. In return, China would resume buying U.S. soybeans, continue supplying rare earth minerals, and help curb fentanyl trafficking.

Despite the announcement, the market reaction was choppy. Traders said the limited upside suggested that parts of the news were already priced in, and that more details were still needed. China has not yet publicly commented on the deal, which adds to the uncertainty.

Asian Stocks Swing; Korea and Japan Slip

Regional equities reacted unevenly. MSCI’s Asia-Pacific index outside Japan slipped after earlier gains, while U.S. S&P 500 futures also moved slightly lower.

South Korea’s KOSPI reversed an early rally despite confirmation of a trade deal between Trump and President Lee Jae Myung. Meanwhile, Samsung Electronics rose more than 3% after a substantial third-quarter profit increase of 32%.

Tech Earnings Add Pressure

U.S. corporate earnings added further tension. Meta and Microsoft both projected heavier spending next year, particularly on AI infrastructure. Their shares dropped, reflecting investor concerns about rising costs.

Alphabet, however, surprised to the upside with more substantial revenue, sending its shares higher.

BOJ Holds; Yen Softens

The Bank of Japan kept interest rates unchanged in a 7-2 vote. Policymakers repeated that they may raise rates later if the economy follows projections.

The yen weakened after the decision, while the Nikkei 225 also edged lower. Analysts believe December may be the next window for a rate hike as Japan slowly normalizes policy.

Fed Says Rate Cut May Be the Last of 2025

The U.S. Federal Reserve cut interest rates by 25 basis points as expected, but signaled it may be done easing for now.

Fed Chair Jerome Powell said future policy decisions could be slower because the government shutdown has limited access to economic data. Investors quickly lowered expectations for another rate cut in December, with the probability dropping sharply.

U.S. Treasury yields rose to near three-week highs. The dollar eased slightly after its recent climb, while gold rallied to nearly $3,960 per ounce.

ECB Outlook and Global Market

The euro strengthened ahead of the European Central Bank meeting, where policymakers are expected to keep interest rates steady for a third straight meeting.

Overall, markets are balancing optimism from the Trump and China's Xi trade deal with uncertainty around central bank decisions and rising tech costs.

Until Beijing confirms the details of the agreement, traders may remain cautious. More clarity in the coming days could help determine whether risk appetite improves or fades further.