Asian Stocks Retreat as Oil Jumps and U.S.-China Talks Weigh

Asian stock markets retreated on Friday, with South Korea's benchmark index surrendering gains after hitting a record high, as investors weighed geopolitical tensions and a major diplomatic summit. The declines followed a mixed session on Wall Street and were driven by concerns over stalled international talks and disruptions to global energy supplies.

South Korea's Kospi index fell 3.2% to 7,727.34 after briefly crossing the 8,000 mark for the first time, a rally previously fueled by optimism around artificial intelligence. Japan's Nikkei 225 dropped 1.2%, and Hong Kong's Hang Seng declined 0.9%. Australia's S&P/ASX 200 dipped 0.1%. U.S. stock futures also edged lower.

The market movements coincided with President Donald Trump concluding a series of meetings in Beijing with Chinese leader Xi Jinping. Discussions covered U.S.-China trade, economic cooperation, and Taiwan. While the visit generated some optimism, analysts urged caution. Economists at Capital Economics noted that several projects promised during Trump's last visit in 2017 failed to materialize as bilateral tensions rose, advising that headline deals "should be looked at with a healthy degree of scepticism." Trump...