Manila, Oct 30 (AP) Asian shares initially retreated on Thursday after President Donald Trump's meeting with Chinese leader Xi Jinping.

While Trump said the meeting was “amazing” and had resolved many issues, investors appeared sceptical. US futures were flat.

Tokyo's Nikkei 225 index bounced lower and then inched up less than 0.1 per cent to 51,333.51 after the Bank of Japan kept its benchmark interest rate unchanged.

Chinese markets gave up early gains, with Hong Kong's Hang Seng shedding 0.2 per cent to 26,298.64. The Shanghai Composite index lost 0.3 per cent to 4,006.60.

South Korea's Kospi index broke through the 4,000 mark for the first time, edging up 0.1 per cent to 4,084.91 after climbing more than 1 per cent earlier in the day following reports of progress in Washington's trade talks with South Korea. Solid corporate earnings also boosted shares in tech, auto and shipbuilding.

In Chinese markets, Hong Kong's Hang Seng index rose 0.8 per cent to 26,555.36 while the Shanghai Composite index added less than 0.1 per cent to 4,017.95. The Hong Kong Monetary Authority (HKMA) on Thursday cut its base rate by 25 basis points to 4.25 per cent. It always follows the US lead in interest rate policies since the value of Hong Kong's currency is linked to the US dollar.

Australia's S&P/ASX 200 shed more than 0.5 per cent to 8,885.50, pulled lower by losses in real estate and consumer discretionary stocks.

Taiwan's Taiex dropped 0.1 per cent while India's BSE Sensex shed 0.5 per cent.

Trump told reporters he was cutting average tariffs on Chinese goods to 47 per cent from 57 per cent, effective immediately after his first face-to-face meeting with Chinese leader Xi Jinping in six years. He cited progress by Beijing in curbing exports of fentanyl and the chemicals used to make it.

Trump also said China was keeping its policy of tighter restrictions on exports of rare earths and related technologies on hold for a year, and he expects that agreement to be extended. The aggressive use of tariffs since returning to the White House for a second term, combined with China's retaliatory limits on exports of rare earth elements, has given the meeting newfound urgency.

There was no immediate word on details of the talks from the Chinese side.

The encounter was a chance for the leaders of the world's two largest economies to stabilise relations after months of turmoil over trade issues.

On Wednesday, US stocks bounced around their records after the Federal Reserve made moves to boost the job market but also warned that more help isn't guaranteed.

The S&P 500 finished virtually flat and edged down by less than 0.1 per cent. The Dow Jones Industrial Average dipped 73 points, or 0.2 per cent, and the Nasdaq composite rose 0.5 per cent. All three indices were coming off an all-time high.

Stocks had been on track for modest gains in the afternoon after the Fed cut its main interest rate for the second time this year in hopes of helping the slowing job market. But the market snapped lower after Chair Jerome Powell later warned that it “is not a foregone conclusion” that the Fed will cut again in December at its next meeting, “far from it.” “That needs to be taken off the board,” Powell said.

In the meantime, the deluge of big US companies reporting how much profit they made during the summer, and the frenzy in artificial-intelligence technology, is driving growth. The pressure is on companies to deliver gains because that's one way they can quiet criticism that their stock prices have shot too high.

In other dealings early Thursday, the benchmark US crude shed 24 cents to USD 60.24 per barrel. Brent crude, the international standard, lost 22 cents to USD 64.10 per barrel.

The US dollar rose to 152.94 Japanese yen from 152.65 yen. The euro edged up to USD 1.1627 from USD 1.1609. (AP) SKS SKS

US-China trade: tariffs cut to 47% and China pauses rare-earth export limits for one year amid monetary adjustments. The US immediately reduced average tariffs on Chinese goods to 47% and China agreed to hold tighter export restrictions on rare earths and related technologies for one year. Monetary responses included a 25-basis-point base-rate cut by the Hong Kong Monetary Authority, linked to the US dollar peg, while the US Federal Reserve had recently cut its main policy rate but signalled uncertainty about further reductions.