Portugal Colonial - Asian markets fall on US-China jitters as leaders meet

Shanghai closed 1.2 percent down, shrugging off US Treasury Secretary Scott Bessent's announcement that the superpowers had agreed to extend a trade truce by two months.

The simmering trade war between the world's top two economies is a key concern. Both sides have maintained a tariff truce for nearly a year but they have yet to secure a lasting agreement.

The "economic detente" will now extend beyond its November 10 deadline to January 10, Bessent said.

However, hopes of business deals have been dimmed by the fact that there are no Chinese CEOs in Xi's delegation, two sources told AFP.

In contrast, top US tech bosses including the leaders of major AI companies are set to attend a banquet for Xi on Thursday.

Pre-summit talks between Bessent and his Chinese counterpart He Lifeng included discussion of creating a communication channel for AI concerns, as warnings swirled that the technology risks wiping out humanity.

"Market participants are looking for signs of cooperation (however feigned) in managing the risks of AI without raising the regulatory risk to the space," said Kyle Rodda, senior financial market analyst at Capital.com.

- Oil cools -

Trump said the Iran war would be on the agenda at the talks, despite having earlier played down reports that Beijing was supplying Tehran with intelligence as the conflict drags on.

Oil prices cooled off on Thursday after jumping sharply as world leaders at the UN General Assembly offered little to suggest progress in ending the turmoil in the Middle East.

The international benchmark, Brent crude, edged up 0.6 percent to $103.71 per barrel in Asia's afternoon trade, stabilising after it soared nearly four percent the previous day.

Hopes for a deal to get Gulf oil and gas flowing freely through the Strait of Hormuz as global leaders gathered in New York had sent oil prices down in recent sessions.

Hong Kong, Sydney, Taipei, Jakarta, Bangkok, Manila and Singapore were all down. South Korea's Kospi was closed for a holiday.

Japan's Nikkei closed 0.8 percent up on its first day back from a three-day break.

Tokyo's gains came as the benchmark 10-year JGB yield rose to 3.055 percent, hitting a 30-year high, after US bond yields jumped.

The benchmark US 10-year Treasury yield rose to 5.11 percent -- its highest level since 2007.

The US Federal Reserve lifted borrowing costs last week, providing relief to traders concerned that policymakers were not moving quickly enough to address a spike in inflation.

London, Paris and Frankfurt opened in the red.

India's largest stock exchange operator, the National Stock Exchange, recorded a subdued trading debut, opening around one percent higher than its issue price after raising $2.35 billion in the country's second-biggest initial public offering.

The NSE, which handles the vast majority of domestic equities trading, had been one of India's most anticipated listings this year and came after a decade-long wait to go public.

- Key figures at around 0715 GMT -

West Texas Intermediate: UP 0.5 percent at $92.63 per barrel

Brent North Sea Crude: UP 0.6 percent at $103.71

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 24,729.20

Shanghai - Composite: DOWN 1.2 percent at 3,888.37 (close)

Tokyo - Nikkei 225: UP 0.8 percent at 65,513.99 (close)

London - FTSE 100: DOWN 0.3 percent at 10,677.64

Dollar/yen: UP at 158.39 from 158.29 on Wednesday

Euro/dollar: UP at $1.1387 from $1.1385

Pound/dollar: DOWN at $1.3241 from $1.3242

Euro/pound: UP at 86.00 from 85.97 pence

A.Aguiar--PC