San Francisco Frontiers - Markets extend record run as trade dominates

Europe's major indices mostly climbed nearing the half-way stage after all-time peaks for some Asian markets as US President Donald Trump voiced optimism on the eve of crunch trade talks with China's Xi Jinping.

Wall Street hit fresh record highs Tuesday on the eve of a rates announcement from the US Federal Reserve, which observers expect will unveil a quarter-percentage-point cut to borrowing costs.

"A key test of investors' optimism looks set to come later (Wednesday) with the US Federal Reserve's decision," said AJ Bell investment director Russ Mould.

The European Central Bank and the Bank of Japan are expected to hold interest rates steady this week.

Ahead of his meeting Thursday with Xi, Trump indicated that a trade deal had been reached with South Korea's President Lee Jae Myung.

Meanwhile agreeing a truce in the US-China trade war with Xi on Thursday in South Korea would mark a fitting grand finale to Trump's Asia tour marked by praise, pomp and presents.

The price of copper reached a record high Wednesday, with the industrial metal boosted also by tight supply concerns.

Geopolitical hopes have added to an already jubilant atmosphere on Wall Street, where highlights during Tuesday's record-breaking day included a five-percent leap for artificial intelligence giant Nvidia.

Benchmark stocks indices in Tokyo and Seoul each reached record highs Wednesday.

After Seoul closed, the United States and South Korea reached an agreement to maintain reciprocal tariffs at 15 percent and to reduce levies on automobiles and auto parts.

Taipei gained more than one percent on the day and Shanghai tracked moderate gains, while Hong Kong was closed for a public holiday.

The record streaks have picked up pace ahead of expected earnings reports in the coming days by major US tech giants including Microsoft and Meta.

This year's AI boom has coincided with a global tariff onslaught unleashed by the US president, with policies hitting China particularly hard.

Ahead of his arrival in South Korea, Trump told reporters on Air Force One he expects "a lot of problems are going to be solved" during his first in-person discussion with Xi since returning to the White House this year.

A spokesperson for Beijing's foreign ministry confirmed the leaders' meeting, saying that it would involve "in-depth communication on strategic and long-term issues concerning China-US relations, as well as major issues of mutual concern".

The two leaders are expected to meet Thursday in Busan, a southern port city not far from the APEC summit attended by Trump.

In company news, shares in UK drugmaker GSK rose two percent in London after it raised its full-year guidance on strong sales growth.

Germany's largest bank Deutsche Bank and Swiss banking giant UBS both reported third-quarter earnings that beat expectations.

- Key figures at around 1110 GMT -

London - FTSE 100: UP 0.6 percent at 9,759.04 points

Paris - CAC 40: UP 0.1 percent at 8,222.69

Frankfurt - DAX: FLAT at 24,276.68

Tokyo - Nikkei 225: UP 2.2 percent at 51,307.65 (close)

Hong Kong - Hang Seng Index: Closed for a holiday

Shanghai - Composite: UP 0.7 percent at 4,016.33 (close)

New York - Dow: UP 0.3 percent at 47,706.37 (close)

Euro/dollar: DOWN at $1.1647 from $1.1656 on Tuesday

Pound/dollar: DOWN at $1.3222 from $1.3336

Dollar/yen: UP at 152.23 yen from 152.06 yen

Euro/pound: UP at 88.10 from 87.80 pence

Brent North Sea Crude: UP 0.3 percent at $64.08 per barrel

West Texas Intermediate: UP 0.3 percent at $60.39 per barrel

A.Smith--SFF