Hong Kong’s Hang Seng index jumped 3% on Monday after news of “substantial progress” in trade talks between China and the US lifted investor sentiment.
Stock markets worldwide surged as the two nations held trade talks in Geneva, announcing agreed to reduce their retaliatory tariffs significantly for 90 days.The two nations slashed their tit-for-tat tariffs, boosting hopes of an end to the long-running trade tensions that shook investor’s confidence around the world.
The US will be reducing its tariffs to 30 percent, while China will cut its own levies to 10 percent, offering breathing room for further negotiations.
The announcement sparked a rally across global markets. Hong Kong’s Hang Seng Index surged 3 percent, leading gains in Asia, while Tokyo, Sydney, Taipei, Seoul and Wellington all closed higher. European indices also reacted positively, with Paris and Frankfurt climbing over 1 percent and London’s FTSE 100 up 0.5 percent.
Hong Kong’s Hang Seng Index ended the day with 3% gains at 23,549. The Japanese benchmark Nikkei was up 0.4% closing at 37,644.26 and Shanghai composite gained 0.8% reaching 3,369.24.
In Europe, FTSE was 0.5% up trading at 8,593.36, however, US benchmark Dow traded closed at 0.3% loss, reaching 41,249.38.
US stock futures also climbed more than 1 percent, and oil prices jumped over 2 percent amid expectations that improved trade relations would boost global demand.
After two days of high-stakes discussions in Switzerland, US treasury secretary Scott Bessent and trade representative Jamieson Greer met with Chinese vice premier He Lifeng and international trade representative Li Chenggang.
“We've made substantial progress between the United States and China in the very important trade talks,” Bessent told reporters, while White House described the outcome as a new “ trade deal.”
China’s commerce ministry supported the decision, saying that the outcome “is in the interest of the two countries and the common interest of the world”.
The tariff clashes began a month back on April 2, when Donald Trump imposed aggressive duties of up to 145 percent on China, prompting Beijing to retaliate with tariffs as high as 125 percent.
Tai Hui, Asia-Pacific chief market strategist at JP Morgan asset management, said, “The magnitude of this tariff reduction is larger than expected. This reflects both sides recognising the economic reality that tariffs will hit global growth and negotiation is a better option going forward.”
He added, “The 90-day period may not be sufficient for the two sides to reach a detailed agreement, but it keeps the pressure on the negotiation process.”
Indian markets also rallied over 3 percent on news of a ceasefire agreement between India and Pakistan. Meanwhile, PSE surged over 9%.
Oil prices jumped over 2% on the anticipation that easing China-UC tensions would boost demand. In currency markets, the dollar advanced 1% against the Euro and Yen.
Stock markets worldwide surged as the two nations held trade talks in Geneva, announcing agreed to reduce their retaliatory tariffs significantly for 90 days.The two nations slashed their tit-for-tat tariffs, boosting hopes of an end to the long-running trade tensions that shook investor’s confidence around the world.
The US will be reducing its tariffs to 30 percent, while China will cut its own levies to 10 percent, offering breathing room for further negotiations.
The announcement sparked a rally across global markets. Hong Kong’s Hang Seng Index surged 3 percent, leading gains in Asia, while Tokyo, Sydney, Taipei, Seoul and Wellington all closed higher. European indices also reacted positively, with Paris and Frankfurt climbing over 1 percent and London’s FTSE 100 up 0.5 percent.
Hong Kong’s Hang Seng Index ended the day with 3% gains at 23,549. The Japanese benchmark Nikkei was up 0.4% closing at 37,644.26 and Shanghai composite gained 0.8% reaching 3,369.24.
In Europe, FTSE was 0.5% up trading at 8,593.36, however, US benchmark Dow traded closed at 0.3% loss, reaching 41,249.38.
US stock futures also climbed more than 1 percent, and oil prices jumped over 2 percent amid expectations that improved trade relations would boost global demand.
After two days of high-stakes discussions in Switzerland, US treasury secretary Scott Bessent and trade representative Jamieson Greer met with Chinese vice premier He Lifeng and international trade representative Li Chenggang.
“We've made substantial progress between the United States and China in the very important trade talks,” Bessent told reporters, while White House described the outcome as a new “ trade deal.”
China’s commerce ministry supported the decision, saying that the outcome “is in the interest of the two countries and the common interest of the world”.
The tariff clashes began a month back on April 2, when Donald Trump imposed aggressive duties of up to 145 percent on China, prompting Beijing to retaliate with tariffs as high as 125 percent.
Tai Hui, Asia-Pacific chief market strategist at JP Morgan asset management, said, “The magnitude of this tariff reduction is larger than expected. This reflects both sides recognising the economic reality that tariffs will hit global growth and negotiation is a better option going forward.”
He added, “The 90-day period may not be sufficient for the two sides to reach a detailed agreement, but it keeps the pressure on the negotiation process.”
Indian markets also rallied over 3 percent on news of a ceasefire agreement between India and Pakistan. Meanwhile, PSE surged over 9%.
Oil prices jumped over 2% on the anticipation that easing China-UC tensions would boost demand. In currency markets, the dollar advanced 1% against the Euro and Yen.
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