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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.