Chinese stocks are set to take the spotlight as U.S. President Donald Trump prepares to meet Chinese President Xi Jinping, with a possible trade truce in the air. Investors harbor cautious optimism that a resolution could sustain the bullish market sentiment.

Expectations of cooling trade tensions have buoyed the Shanghai Composite Index to new highs, yet there's a familiar feeling that the anticipated deal may fall short of expectations. As Trump wraps up his Asian tour in South Korea, he expressed optimism for a favorable outcome, indicating positive relations with China.

However, the stakes are high amidst a year of significant market rallies. While a constructive dialogue could maintain investor appetite, analysts remain vigilant, noting past trade negotiations' pitfalls. Meanwhile,

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