China stocks skyrocket after Trump and Xi agree to a pause in tariff escalation

In Japan, the Nikkei 225 jumped 2.13% to close at 21,729.97, with shares of index heavyweight and robot-maker Fanuc soaring about 3%. Mainland Chinese shares soared on the day. The CSI 300 index, which tracks the largest listed stocks on the mainland, added 2.88% to around 3,935.81. US-China tradeThe moves came after Trump and Xi emerged from a meeting on the sidelines of the Group of 20 summit in Osaka, Japan. On the subject of Huawei, Trump suggested that he will be reversing his government’s


In Japan, the Nikkei 225 jumped 2.13% to close at 21,729.97, with shares of index heavyweight and robot-maker Fanuc soaring about 3%. Mainland Chinese shares soared on the day. The CSI 300 index, which tracks the largest listed stocks on the mainland, added 2.88% to around 3,935.81. US-China tradeThe moves came after Trump and Xi emerged from a meeting on the sidelines of the Group of 20 summit in Osaka, Japan. On the subject of Huawei, Trump suggested that he will be reversing his government’s
China stocks skyrocket after Trump and Xi agree to a pause in tariff escalation Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-01  Authors: eustance huang
Keywords: news, cnbc, companies, products, decision, xi, pause, agree, huawei, shares, day, skyrocket, escalation, added, chinese, index, trump, tariffs, stocks, china, tariff


China stocks skyrocket after Trump and Xi agree to a pause in tariff escalation

South Korea’s Kospi closed fractionally lower at 2,129.74 as shares of industry heavyweight Samsung Electronics fell 0.85%. Australia’s S&P/ASX 200 rose 0.44% to finish its trading day at 6,648.10.

In Japan, the Nikkei 225 jumped 2.13% to close at 21,729.97, with shares of index heavyweight and robot-maker Fanuc soaring about 3%. The Topix index also gained 2.17% to finish its trading day at 1,584.85.

Mainland Chinese shares soared on the day. The Shanghai composite added 2.22% to about 3,044.90, while the Shenzhen component soared 3.84% to 9,530.46. The Shenzhen composite also added 3.464% to approximately 1,616.55. The CSI 300 index, which tracks the largest listed stocks on the mainland, added 2.88% to around 3,935.81.

Asia Pacific markets mostly rose on Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on slapping additional tariffs in an effort to resume trade talks.

US-China trade

The moves came after Trump and Xi emerged from a meeting on the sidelines of the Group of 20 summit in Osaka, Japan. Both sides confirmed in separate comments that they did not plan to levy any new tariffs against each other’s products at the present time.

Still, analysts said the decision is unlikely to spur business decisions.

“Although a worst case outcome has been averted, the threat of tariffs remains and it is unlikely the truce gives much confidence to firms’ investment and hiring decisions,” Tapas Strickland, an economist at National Australia Bank, wrote in a note.

“It is likely that soft manufacturing conditions will persist until if and when a fuller agreement is fleshed out,” Strickland said.

Over at Citi, analysts said in a note: “We expect the current truce to last through the end of the year, with 2020 potentially being a ‘Deal-maker’ year.”

In the event that negotiations “fail,” however, 10% tariffs on the $300 billion of Chinese imports “would be almost ready to go,” they said.

On the subject of Huawei, Trump suggested that he will be reversing his government’s decision to ban American companies from selling products to the Chinese telecommunications behemoth. Previously, Washington had described the tech giant as a security risk to the U.S. and its allies.

Still, Trump said the issue of Huawei will be resolved only at the conclusion of the negotiations.

Following Trump’s comments, White House economic advisor Larry Kudlow told Fox News Sunday that the decision to let Huawei buy U.S. products is “not a general amnesty. ”

“I think it’s going to be very interesting to see how Huawei plays out,” Rob Subbaraman, head of global macro research at Nomura, told CNBC’s “Squawk Box” on Monday.

“What happens in terms of these … ‘structural issues’, technology transfer, (intellectual property rights) … state subsidies, whether China starts to … in Trump’s words, ‘level the playing field,’ I think is going to be very important,” Subbaraman said.


Company: cnbc, Activity: cnbc, Date: 2019-07-01  Authors: eustance huang
Keywords: news, cnbc, companies, products, decision, xi, pause, agree, huawei, shares, day, skyrocket, escalation, added, chinese, index, trump, tariffs, stocks, china, tariff


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