Asia-Pacific markets traded mixed as investors assessed a 90-minute phone call between U.S. President Donald Trump and Chinese President Xi Jinping. Both leaders agreed to resume high-level negotiations to end the ongoing trade war, with Trump describing the discussion as "very good" and yielding a positive conclusion for both countries.
U.S. stocks jumped Friday as nonfarm payrolls climbed by 139,000 in May, beating the forecast of 125,000. The Dow popped 443 points, while the S&P 500 surpassed the 6,000 level for the first time since February. The unemployment rate remained steady at 4.2%, easing immediate fears of an economic slowdown.
Oil prices rose more than $1 a barrel, putting crude on track for its first weekly gain in three weeks. Sentiment was lifted by favorable U.S. employment data and the resumption of U.S.-China trade talks. Brent futures gained 1.96% to $66.62, while WTI climbed to $64.71, even as Saudi Arabia cut July prices for Asia.
Gold prices slipped more than 1% as robust U.S. jobs data dampened expectations for imminent Federal Reserve rate cuts. Markets are now looking toward September for the first potential reduction. Conversely, silver earlier hit its highest level since 2012 before settling slightly lower at $35.96.
Treasury Secretary Scott Bessent and other administration officials will meet Chinese counterparts in London this Monday. This follows the breakthrough phone call between Trump and Xi. The meeting aims to build on the Geneva talks, where both nations previously lowered tariffs on a range of goods.
Investors poured a net $66.24 billion into U.S. money market funds, the largest weekly inflow since late 2024. The surge reflects growing caution over new steel tariffs and trade uncertainties. Meanwhile, riskier equity funds saw $7.42 billion in outflows, with the small-cap segment taking the largest hit.
Indian markets rallied as the RBI delivered a surprise 50 basis point rate cut and reduced the cash reserve ratio (CRR) by 100 bps. The Nifty 50 added about 1% to close at 25,003.05, marking its first weekly gain after two weeks of declines as the central bank shifted its stance to neutral.
The European Central Bank cut interest rates for the eighth time since last June, bringing the rate to 2%. However, President Christine Lagarde hinted at a potential pause in the easing cycle now that inflation has returned to the 2% target, suggesting the bank is currently in a "good position."
A lobbying battle has erupted over the $175 billion "Golden Dome" missile shield project. The Trump administration's preference for "non-traditional" contractors has pitted tech startups against established defense giants like Lockheed Martin. The project aims to create a space-based shield inspired by Israel's Iron Dome.
UBS shares jumped as much as 6% following the announcement of new Swiss capital regulations. While the rules require an additional $26 billion in CET1 capital, investors were relieved by the long implementation window, with full compliance not required until 2033.
Tesla shares recouped nearly 4% after a massive selloff fueled by a public dispute between Elon Musk and Donald Trump. Tensions remain high as Musk continues to criticize the proposed ending of EV tax incentives, while Trump has suggested potential cuts to government contracts with SpaceX.