{"id":61873,"date":"2026-05-12T23:38:35","date_gmt":"2026-05-13T03:38:35","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-braced-for-trump-xi-summit-amid-hormuz-blockade-and-rising-inflation-pressures\/61873\/"},"modified":"2026-05-12T23:38:35","modified_gmt":"2026-05-13T03:38:35","slug":"global-markets-braced-for-trump-xi-summit-amid-hormuz-blockade-and-rising-inflation-pressures","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-braced-for-trump-xi-summit-amid-hormuz-blockade-and-rising-inflation-pressures\/61873\/","title":{"rendered":"Global Markets Braced for Trump-Xi Summit Amid Hormuz Blockade and Rising Inflation Pressures"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Vietnam appeals to the U.S.<\/strong> to allow a critical supertanker, the <em>Agios Fanourios I<\/em>, to bypass the <strong>Strait of Hormuz blockade<\/strong>, warning that the <strong>1.99 million barrels of crude<\/strong> are essential to prevent a total shutdown of the <strong>Nghi Son refinery<\/strong>.<\/li>\n<li><strong>President Donald Trump arrives in Beijing<\/strong> today for a high-stakes summit with <strong>Xi Jinping<\/strong>, aiming to pressure China to &quot;open up&quot; its economy and help mediate the <strong>U.S.-Israel-Iran conflict<\/strong> that has paralyzed global energy routes.<\/li>\n<li><strong>New Zealand\u2019s 2-year inflation expectations<\/strong> jumped to <strong>2.53%<\/strong> in Q2, up from 2.37%, signaling persistent price pressures that may force the <strong>Reserve Bank of New Zealand (RBNZ)<\/strong> to maintain a hawkish stance.<\/li>\n<li><strong>Taiwanese equities tumbled over 2%<\/strong> as Beijing intensified its &quot;One China&quot; rhetoric and blocked Taipei\u2019s participation in the <strong>World Health Assembly (WHA)<\/strong>, further straining cross-strait relations.<\/li>\n<li><strong>METiS TechBio (<a href=\"\/stock\/7666.HK\">7666.HK<\/a>)<\/strong> surged <strong>173%<\/strong> in its Hong Kong debut, highlighting investor appetite for <strong>AI-driven biotechnology<\/strong> and &quot;nano-rocket&quot; drug delivery systems.<\/li>\n<\/ul>\n<p>The global financial landscape is under significant strain as <strong>U.S. President Donald Trump<\/strong> begins a three-day visit to China, a trip overshadowed by the ongoing <strong>Strait of Hormuz blockade<\/strong>. The blockade, a byproduct of the <strong>U.S.-Israel war with Iran<\/strong>, has effectively halted <strong>20% of global oil and gas supplies<\/strong>, sending energy prices soaring and complicating diplomatic relations across Asia.<\/p>\n<p><strong>Vietnam<\/strong> has emerged as a vocal casualty of the maritime standoff, with state-owned <strong>PetroVietnam Oil<\/strong> formally requesting that the <strong>U.S. Navy<\/strong> allow a supertanker carrying Iraqi crude to pass. The vessel, <em>Agios Fanourios I<\/em>, reportedly performed a mid-ocean U-turn earlier this week after encountering the blockade; officials warn that any further delay risks &quot;cascading consequences&quot; for the Vietnamese economy and its millions of consumers.<\/p>\n<p>In Beijing, <strong>President Trump<\/strong> is expected to propose the creation of a <strong>&quot;Board of Trade&quot;<\/strong> to address long-standing economic grievances and request that <strong>President Xi Jinping<\/strong> further liberalize the Chinese market. While trade remains the formal priority, analysts suggest the <strong>Hormuz crisis<\/strong> will dominate private discussions, as China\u2014the world&#39;s largest oil importer\u2014seeks to protect its energy security while the U.S. looks for a diplomatic exit from the Middle East conflict.<\/p>\n<p>Currency markets are reflecting this heightened uncertainty, with <strong>Asian currencies consolidating<\/strong> as traders await the latest <strong>U.S. CPI data<\/strong>. The <strong>British Pound (<a href=\"\/stock\/GBPUSD\">GBP\/USD<\/a>)<\/strong> remains vulnerable, hovering near a two-week low but managing to hold the <strong>1.3500<\/strong> psychological support level. Meanwhile, <strong>New Zealand&#39;s<\/strong> latest inflation survey has fueled bets on higher-for-longer interest rates, as expectations for the next two years rose significantly above the previous quarter&#39;s <strong>2.37%<\/strong>.<\/p>\n<p>Geopolitical tensions also weighed heavily on <strong>Taiwanese markets<\/strong>, where the <strong>Taiex<\/strong> fell more than <strong>2%<\/strong>. The drop followed a series of aggressive statements from China\u2019s <strong>Taiwan Affairs Office<\/strong>, which reiterated its opposition to U.S. military ties with Taipei and described the &quot;Taiwan question&quot; as a strictly domestic issue. This rhetoric coincided with Beijing&#39;s move to block Taiwan from the <strong>World Health Assembly<\/strong>, a move Taipei condemned as a violation of its sovereignty.<\/p>\n<p>Despite the broader market gloom, the <strong>biotechnology sector<\/strong> provided a bright spot. <strong>METiS TechBio (<a href=\"\/stock\/7666.HK\">7666.HK<\/a>)<\/strong>, a pioneer in using AI to design &quot;nano-rockets&quot; for targeted drug delivery, saw its shares skyrocket during its initial public offering in Hong Kong. The company\u2019s successful listing, which raised <strong>HK$2.11 billion<\/strong>, signals a robust &quot;AI-driven&quot; trend in the pharmaceutical industry, even as traditional sectors struggle with macroeconomic headwinds.<\/p>\n<p>Finally, the <strong>OECD Secretary-General<\/strong> offered a vote of confidence for the <strong>Bank of Japan (BoJ)<\/strong>, stating the central bank is not &quot;behind the curve&quot; regarding its monetary policy. With <strong>wages strengthening<\/strong> and inflation expectations remaining anchored, the OECD suggested that the BoJ\u2019s gradual tightening path\u2014currently holding rates at <strong>0.75%<\/strong>\u2014is appropriate despite the global inflationary shock caused by the Middle East war.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Vietnam appeals to the U.S. to allow a critical supertanker, the Agios Fanourios I, to bypass the Strait 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