Thursday, 21st May 2026
Khabor Wala Desk
Published: 6th June 2025, 6:32 PM
HONG KONG, 6 June 2025 (BSS/AFP) – Asian stock markets staggered on Friday as the initial optimism generated by what were described as “very positive” talks between Presidents Donald Trump and Xi Jinping was sharply undercut by a public spat between Trump and billionaire entrepreneur Elon Musk.
Diplomatic Hopes Dashed by Domestic Drama
The high-profile discussions between the leaders of the world’s two largest economies had raised investor hopes of easing trade tensions, especially after President Trump’s “Liberation Day” global tariff spree, which notably targeted China.
However, any goodwill from the talks was quickly undermined by an extraordinary and public war of words between Trump and Musk on social media. The exchange saw the two trade personal insults and threats, culminating in a sharp market reaction that left Wall Street in the red.
Wall Street Reaction
The fallout from the Trump–Musk altercation was felt immediately in US markets:
Asian Market Performance
Markets across Asia opened mixed on Friday, reflecting trader uncertainty and growing anxiety over both the Trump–Musk conflict and upcoming US jobs data.
| Market | Direction | Index Value | Change |
| Tokyo (Nikkei 225) | ▲ UP | 37,730.67 | +0.5% |
| Hong Kong (Hang Seng) | ▼ DOWN | 23,844.13 | −0.3% |
| Shanghai Composite | ▼ DOWN | 3,382.06 | −0.1% |
| Taiwan | ▼ DOWN | — | — |
| Sydney | ▲ UP | — | — |
| Singapore | ▲ UP | — | — |
| Wellington | ▲ UP | — | — |
Expert Commentary
Chris Weston, Pepperstone:
“While the call with Xi was seen as a step in the right direction, it offered nothing tangible for traders. Attention has quickly shifted to the Trump–Musk war of words.”
He added that traders are now firmly focused on the US nonfarm payroll figures, calling it a major risk that Asia-based investors need to prepare for.
“There is an elevated risk of Trump making market-moving comments over the weekend. Traders are now bracing for potential Monday market turbulence.”
Jobs Data and Federal Reserve Expectations
The US employment data, due later Friday, is under intense scrutiny following a disappointing report on private sector hiring earlier in the week. The figures will provide vital clues about the health of the American labour market and will influence expectations regarding interest rates.
Economists suggest that:
Stephen Innes, SPI Asset Management:
“Ironically, strong jobs numbers could hurt the market. A better-than-expected reading might force traders to reconsider upcoming Fed cuts.”
“In this upside-down market regime, strength can be weakness. Positive data for Main Street could spell bad news for Wall Street.”
Global Market Indicators (as of 02:30 GMT)
| Index / Instrument | Value / Rate | Direction |
| Euro / Dollar | $1.1435 | ▼ DOWN from $1.1444 |
| Pound / Dollar | $1.3567 | ▼ DOWN from $1.3571 |
| Dollar / Yen | ¥143.84 | ▲ UP from ¥143.58 |
| Euro / Pound | 84.27 pence | ▼ DOWN from 84.31 |
| West Texas Intermediate | $63.16 per barrel | ▼ DOWN 0.3% |
| Brent Crude (North Sea) | $65.17 per barrel | ▼ DOWN 0.3% |
Key Stock Market Closures
| Market | Index | Direction | Value |
| New York (Dow) | Dow Jones | ▼ DOWN 0.3% | 42,319.74 |
| London (FTSE 100) | FTSE 100 | ▲ UP 0.1% | 8,811.04 |
While the Trump–Xi call brought a brief sense of diplomatic optimism, it was quickly overshadowed by domestic political chaos in the United States. Investors across the globe are now holding their breath ahead of key US employment figures, wary of what the coming days – and Trump’s Twitter account – may bring for global markets.
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