Global Shares Climb As China-US Settle Tariff War

Hong Kong: Asian shares were mixed Tuesday as the initial euphoria over the 90-day truce in the trade war between the United States and China faded, as analysts warned President Donald Trump's policies could still quickly change. The United States said in a joint statement with China that it will cut tariffs on Chinese goods to 30 per cent from as high as 145 per cent. China, meanwhile, said its tariffs on US goods will fall to 10 per cent from 125 per cent.

“That allows time for more talks following the weekend's negotiations in Geneva, Switzerland, which the US side said yielded "substantial progress.” The outcome surpassed most expectations, reassuring investors," said Stephen Innes of SPI Asset Management. “Make no mistake, this was highly stage-managed diplomacy. But the optics are good and the implications real. It signals that even this administration recognizes the economic drag of unrelenting tariffs,” he said in a commentary.

Still, big challenges remain in the negotiations between Beijing and Washington and many Asian countries have yet to negotiate tariff-alleviating deals of their own. Beijing's anger over the trade war remains apparent. Speaking to officials from China and Latin America on Tuesday, Chinese leader Xi Jinping reiterated Beijing's stance that nobody wins a trade war and that “Bullying or hegemonism only leads to self-isolation.”

Tokyo's Nikkei 225 jumped 1.6 per cent to 38,232.21 Automakers were among the big gainers, with Toyota Motor Corp. up 3.7 per cent and Suzuki Motor Corp 4.3 per cent higher. Nissan Motor Co added 3.4 per cent after Japan's national broadcaster NHK said it plans to lay off more than 10,000 of its workers, raising the total to 20,000, as part of its restructuring efforts. The company was due to announce its financial results for the last fiscal year later Tuesday. The Kospi in South Korea was nearly unchanged at 2,606.46. Hong Kong's Hang Seng, which gained 3 per cent a day earlier after Chinese and U.S. officials announced the agreement to pause tariffs and reduce them, fell 1.5 per cent to 23,189.15 on heavy selling of technology shares.