The US leader fuelled a surge in the region's equities Friday by tweeting that he had held positive talks with Chinese President Xi Jinping, before a report said he had even asked officials to draw up a draft bill with an eye on a potential agreement.
The news sent US markets into the red, snapping a three-day rally on Wall Street, and sending Asian investors rushing for the door.
"But ultimately, they will need to decide how much of President Trump's olive branch to China was a ploy to boost equity markets ahead of the US mid-term elections on Tuesday and how much of it is a bona fide attempt to reach an agreement."
Hong Kong - which climbed more than four percent Friday in its best day for almost seven years - sank more than two percent, while Shanghai ended down 0.4 per cent.
He said authorities would "step up" moves to stimulate domestic consumption of imports, lower tariffs, ease customs clearance procedures, and implement harsh punishments for intellectual property infringements, a key cause of Washington's anger with Beijing.
However, Manila gained 0.8 per cent.
Traders are now keeping an eye on the US mid-term elections Tuesday, which are seen as a vote on Trump's performance since taking the White House, with the Democrats looking to take control of the House of Representatives.
A win for them could also raise the chances of Trump being impeached, fuelling uncertainty.
"The mid-term elections carry a considerable amount of political and market risk not to mention legal risk for the current administration so that the markets could swivel higher or lower on the outcome of this election," Innes added.
On currency markets the dollar was holding up against the yen after Friday's US jobs data showed another blockbuster number of new positions created and the biggest jump in wages for nine years.
The data solidified expectations the Federal Reserve will press on with its interest rate hikes next month and into 2019.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)