China’s President Xi Jinping (R) and US President Donald Trump visit the Temple of Heaven in Beijing on May 14, 2026. Xi warned Trump that the issue of Taiwan could push their two countries into “conflict” if mishandled, a stark opening salvo as a superpower summit set to tackle numerous thorny issues began in Beijing on May 14. (Photo by Brendan SMIALOWSKI / POOL / AFP via Getty Images)
Brendan Smialowski | Afp | Getty Images
South Korea’s benchmark Kospi gave up earlier gains to fall more than 3% on Friday, retreating from a fresh record high above 8,000 as broader Asia-Pacific markets fell. Investors were tracking the second day of high-stakes talks between U.S. President Donald Trump and Chinese President Xi Jinping.
The small-cap Kosdaq was down 2.61%. Japan’s Nikkei 225 declined 1.1% and the Topix lost 0.13%. In Australia, the S&P/ASX 200 was little changed.
Hong Kong’s Hang Seng index slid 0.89% while the CSI 300 remained flat. India’s Nifty 50 was up 0.2%.
The Kospi topped 7,000 for the first time on May 5, after index heavyweight Samsung Electronics reached a record high, crossing $1 trillion in market capitalization.
The record-breaking streak comes amid concerns of concentration risks, particularly in artificial intelligence stocks. Samsung Electronics and SK Hynix together made up a record 42.2% of the Kospi in May, according to Manulife Investment Management.
The earlier gains in South Korea’s market reflected investor optimism that the Trump-Xi talks could ease tensions around trade and technology exports, particularly for chipmakers and AI-related stocks.
Shares of Samsung Electronics fell by more than 5% after its labor union said it would proceed with its planned 18-day strike from May 21 involving more than 45,00 workers, even though the company has proposed resuming wage talks without preconditions.
The union said it was willing to return to negotiations after June 7.
Trump arrived in Beijing on Wednesday for the closely watched summit, joined by a delegation of American business leaders, including Tesla CEO Elon Musk and Nvidia chief Jensen Huang.
Xi warned Trump on Thursday that Washington and Beijing could face “clashes and even conflicts” if the sensitive issue of Taiwan independence is mishandled.
Failure to handle the matter “properly” could place “the entire relationship in great jeopardy,” Xi was quoted as saying.
U.S. stock futures were little changed on Thursday night. Dow futures fell by 10 points, or 0.02%. S&P 500 futures dipped 0.02%, and Nasdaq 100 futures rose 0.06%.
Overnight in the U.S., the Dow Jones Industrial Average retook 50,000 after Cisco Systems reported strong earnings. The 30-stock index popped 370.26 points, or 0.75%, to end at 50,063.46.
The S&P 500 climbed 0.77% and closed at 7,501.24, while the Nasdaq Composite gained 0.88% to 26,635.22. Those two indexes scored fresh all-time intraday highs and record closes.
— CNBC’s Justina Lee, Sean Conlon and Lisa Kailai Han contributed to this report
