Asia stocks sink on caution over Trump-Xi deal, BOJ hold hits yen

Group 1 - Asian stocks experienced volatility, fluctuating between gains and losses following a deal announcement between U.S. President Trump and Chinese President Xi regarding rare earths and tariffs [1][2] - Trump stated that tariffs on Chinese imports would be reduced in exchange for China resuming U.S. soybean purchases and maintaining rare earth exports [2] - Despite initial optimism, markets sold off due to concerns that the tariff agreement may not be sustainable, with MSCI's Asia-Pacific index dropping 0.5% after an earlier increase [3] Group 2 - European market futures showed mixed results, with pan-region futures up 0.2% and German DAX futures rising 0.3%, while FTSE futures slipped 0.1% [4] - Analysts suggest that the recent meeting represents a tactical pause rather than a significant breakthrough in trade relations [4] - Market sentiment remains skeptical about a comprehensive agreement, with potential for renewed tariff threats if the tone from U.S. officials shifts [5] Group 3 - The Bank of Japan maintained its interest rates but indicated a willingness to increase borrowing costs if economic conditions align with projections [6] - The Nikkei 225 index showed fluctuations but ultimately closed at a record high following the Bank of Japan's decision [6] - The yen weakened against the U.S. dollar and euro, reaching its lowest levels since February, influenced by comments from U.S. Treasury Secretary regarding rate hikes [7]