Trade Tensions Cast Shadow Over China and Hong Kong Markets

Chinese and Hong Kong stock markets closed marginally lower on Friday, continuing to tread on uncertain ground. The lack of progress in easing trade tensions during a phone call between U.S. President Donald Trump and Chinese President Xi Jinping left investors cautious about future developments.

Despite weeks of heightened trade disputes and critical mineral conflicts, Thursday's rare direct discussion between the two leaders failed to yield any substantial breakthroughs. This ongoing situation has led to little impact on stock performance, with China's CSI300 Index down 0.1% and the Hang Seng Index dropping 0.5%.

As global markets rallied, Chinese stocks struggled for direction, with participants like Guo Jianwen of Haiyi Capital and Charles Wang of Shenzhen Dragon Pacific Capital emphasizing the challenges both countries face in navigating their complex relations. The call highlighted Xi's warning to Trump over Taiwan, interpreted as a sign of no imminent military action from China.

(With inputs from agencies.)