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During a meeting at Akasaka Palace in Tokyo on October 28, 2025, U.S. President Donald Trump and Japanese Prime Minister Sanae Takaichi celebrated the signing of a significant agreement concerning critical minerals and rare earths. Trump’s visit to Asia includes attending the ASEAN summit in Malaysia, followed by stops in Japan and South Korea, before the APEC meetings.
Andrew Harnik | Getty Images News | Getty Images
Investors across Asia reacted cautiously on Tuesday as the markets processed the newly inked rare earths partnership between the U.S. and Japan. This development curbed some of the optimism stemming from Wall Street’s recent record highs.
After arriving in Tokyo on Monday, Trump was welcomed by Japan’s Emperor Naruhito and became the first international leader to meet with Prime Minister Takaichi since her inauguration.
In Japan, the Nikkei 225 index pulled back from its record-setting levels, dipping 0.58% to settle at 50,219.18. Similarly, the broader Topix index declined by 1.18%, closing at 3,285.87.
Elsewhere in the Asia-Pacific region, market responses were mixed, despite the upward momentum from Wall Street, where all three major U.S. indices reached new record closing highs.
South Korea’s Kospi also fell from its record high on Monday, dropping 0.8% to close at 4,010.41.
The small-cap Kosdaq inched up marginally, ending the day at 903.3, its highest level since April 2024.
South Korea also reported its third-quarter GDP numbers, which beat expectations and marked its fastest pace of expansion in over a year.
Australia’s S&P/ASX 200 dipped 0.48% to close at 9,012.5.
Hong Kong Hang Seng index was 0.33% down and finished at 26,346.14, while mainland China’s CSI 300 also lost 0.51% to close at 4,691.97, ending a three-day winning streak.
China’s Sany Heavy Industry traded flat on its Hong Kong trading debut Tuesday after raising HKD$12.36 billion ($1.59 billion) in one of the city’s largest listings this year.
Overnight in the U.S., the S&P 500 climbed 1.23% to 6,875.16, its first close ever above the 6,800 level.
The Nasdaq Composite rallied 1.86% to 23,637.46, bolstered by a rise in Nvidia and other chip stocks. The Dow Jones Industrial Average jumped 337.47 points, or 0.71% to 47,544.59.
Key market catalysts loom ahead this week, including Big Tech earnings, a Federal Reserve rate decision and a potential China trade deal.
— CNBC’s John Melloy, Sean Conlon and Liz Napolitano contributed to this report.
