Asian markets rally on US-China trade tariff ceasefire
Shares in China were up on Monday as investors cheered on the ceasefire between China president Xi Jinping and US president Donald Trump and their interest to resume with the trade talks.
Markets in Asia rallied on Monday morning following the agreement from the United States (US) and China to hold off further tariffs and to resume trade talks at the Group of 20 summit over the weekend.
Shares in China rallied on Monday as investors cheered on the ceasefire between China president Xi Jinping and US president Donald Trump and their interest to resume with the trade talks.
The benchmark Shanghai Composite Index jumped 1.54%, or 45.74 points, at 3,024.62, while the smaller Shenzhen Composite Index climbed 2.08%, or 32.43 points, to 1,594.85.
Tokyo stocks opened higher with the benchmark Nikkei 225 index up by 1.63%, or 347.50 points, at 21,623.42 while the broader Topix index rose by 1.60%, or 24.79 points, to 1,575.93.
Malaysia and Singapore shares also rose at the open. The FTSE Bursa Malaysia Kuala Lumpur Composite Index was higher by 3.21 points, at 1,675.34 while the Singapore Straits Times Index gained 0.6%, or 20.6 points, at 3,342.22, minutes into trading.
US-China resume trade talks
China’s president Xi and US president Trump agreed on Saturday to resume trade talks, avoiding the escalation of their multi-billion tariff war, a long drawn dispute which has roiled global markets and has placed both of the world’s two largest economies at risk.
The agreement to restart talks come after a seven-week stalemate. On Saturday, both leaders came to an agreement to continue with the trade talks after more than an hour of discussion.
‘We discussed a lot of things, and we’re right back on track,’ Mr Trump told reporters after his session with Mr Xi on the side lines of the annual summit meeting of the G20 in Osaka, Japan, reported The New York Times.
‘We had a very, very good meeting with China,’ the president added, ‘I would say probably even better than expected, and the negotiations are continuing.’
Additional tariffs to be put on hold: Trump
Mr Trump said he will put on hold his earlier threat to slap on 25% of tariffs on US$300 billion in Chinese imports. The president also agreed to lift some restrictions on Chinese technology firm Huawei, the firm that has been caught in the rift-raff between the two nations.
Mr Trump also claimed that China, in exchange, has agreed to buy a ‘tremendous amount’ of American food and agricultural products.
Washington has already imposed 25% of tariffs on US$250 billion of Chinese goods and China has retaliated with tariff hikes on US$60 billion of US goods.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets