U.S.–China trade talks in Kuala Lumpur termed ‘very constructive’, lifting Asia risk sentiment

Senior U.S. and Chinese officials described the first day of trade talks in Kuala Lumpur as “very constructive,” signalling a push to de-escalate tariff threats and ease technology/export-control frictions. While sticking points remain, negotiators aim to clear the path for a leader-level meeting next week. Asian equities and trade-sensitive sectors responded with modest gains as investors priced lower immediate risk of escalation. Market focus now turns to concrete deliverables, including any tariff deferrals and commodity-supply assurances that could stabilize global manufacturing sentiment.