In Hong Kong, the benchmark Hang Seng Index lost 72 points, or 0.29 percent, to end at 24,761.
The tech index was almost 18 points, or 0.41 percent, down at 4,361 while the China enterprises index was seven points, or 0.09 percent, lower at 8,266.
Energy, banking and shipping stocks listed in Hong Kong outperformed, offsetting some of the losses in the SAR market.
On the mainland, the blue-chip CSI300 Index fell 1.7 percent while the benchmark Shanghai Composite Index closed down 48 points, or 1.22 percent, at 3,888, with both indices marking their biggest one-day drop in a month.
The Shenzhen Component Index fell 319 points, or 2.34 percent, to 13,316 while the ChiNext Index plunged 90 points, or 2.68 percent, to 3,288.
Trump welcomed Xi to Washington on Wednesday for a three-day visit that will test relations between the two superpowers.
Xi’s first trip to the United States in nearly three years was not expected to yield major breakthroughs, but US Treasury Secretary Scott Bessent said the two countries agreed to extend a trade truce by two months.
The extension is “shorter than market expectations” for a one-year rollover, but nonetheless helps preserve stability in the bilateral relationship, analysts at UBS said in a sales note.
Also weighing on sentiment was the absence of a delegation of Chinese business leaders during Xi’s visit, which Beijing had sought to bring for meetings with Trump, sources said.
Most sectors were lower by midday, led by gold equities, non-ferrous metal and AI hardware stocks.
The broad selloff also mirrored overnight weakness on Wall Street, where stocks retreated as higher oil prices and rising US Treasury yields dampened sentiment.
Sanjeev Rana, head of north Asia semiconductors research at CLSA, said that while there are expectations around Beijing and Washington working together on AI development and making AI safe, he does not foresee any relaxation on chip-export controls from the US side.
Some investors are more positive.
“Trump is a very pragmatic president, and he understands comparative strength in the global economy very well,” said Charles Wang, chairman of Shenzhen Dragon Pacific Capital Management.
“I think US-China relations are evolving from outright confrontation, towards mutual understanding, compromise and a framework of co-existence.”
In Tokyo, the Nikkei rose 495 points, or 0.76 percent, to 65,513 in a holiday-shortened week as CPU-related stocks jumped after Meta unveiled its AI gadget Meta Charm, fuelling demand prospects for computer components.
The broader Topix gave up early gains to slip 15 points, or 0.39 percent to 4,075. (Reuters/Xinhua)
