South Korea's Kospi hit fresh record of 8,000 as Trump-Xi talks enter second day

South Korea's benchmark Kospi notched a fresh record high on Friday, leading gains in Asia-Pacific markets as investors tracked the second day of high-stakes talks between U.S. President Donald Trump and Chinese President Xi Jinping.

The index rose more than 0.6% to more than 8,000, while the small-cap Kosdaq was down 0.4%.

Japan's Nikkei 225 added 0.89% and the Topix jumped 1.18%. In Australia, the S&P/ASX 200 gained 0.42%.

Hong Kong's Hang Seng index futures were at 26,341, slightly below the index's last close of 26,389.04.

The Kospi topped 7,000 for the first time on May 5 after index heavyweight Samsung Electronics reached a record high to cross $1 trillion in market capitalization.

The record-breaking streak comes amid concerns of concentration risks, particularly in artificial intelligence stocks. Samsung Electronics and SK Hynix together made up a record 42.2% of the Kospi in May, according to Manulife Investment Management.

The gains in South Korea's market also reflected investor optimism that the Trump-Xi talks could ease tensions around trade and technology exports, particularly for chipmakers and AI-related stocks.

Trump arrived in Beijing on Wednesday for the closely watched summit, joined by a delegation of American business leaders, including Tesla CEO Elon Musk and Nvidia chief Jensen Huang.

Xi warned Trump on Thursday that Washington and Beijing could face "clashes and even conflicts" if the sensitive issue of Taiwan independence is mishandled.

Failure to handle the matter "properly" could place "the entire relationship in great jeopardy," Xi was quoted as saying.

U.S. stock futures were little changed on Thursday night. Dow futures fell by 10 points, or 0.02%. S&P 500 futures dipped 0.02%, and Nasdaq 100 futures rose 0.06%.

Overnight in the U.S., the Dow Jones Industrial Average retook 50,000 after Cisco Systems reported strong earnings. The 30-stock index popped 370.26 points, or 0.75%, to end at 50,063.46.

The S&P 500 climbed 0.77% and closed at 7,501.24, while the Nasdaq Composite gained 0.88% to 26,635.22. Those two indexes scored fresh all-time intraday highs and record closes.

— CNBC's Justina Lee, Sean Conlon and Lisa Kailai Han contributed to this report