Hong Kong Stocks up 3% as US-China Trade Talks Concludes on Positive Note
Heng Seng surged by 2.98% at 23,549.46, while the Hang Seng Tech index soared 5.16% to 5,447.35, their highest levels since March 27. China’s CSI 300 index was up by 1.16% to end the day at 3,890.60.
Hong Kong Stocks up 3% as US-China Trade Talks Concludes on Positive Note
Asian markets were in green after US and China inked a trade deal, announcing a 90-day pause on tariffs, while slashing reciprocal tariffs by 115 percentage points.
“The magnitude of this tariff reduction is larger than expected,” Tai Hui, APAC Chief Market Strategist at J.P. Morgan Asset Management, noted.
He wrote in Monday’s note, “This reflects both sides recognizing the economic reality that tariffs will hit global growth and negotiation is a better option going forward. 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,”
Hui also added that investors would still be awaiting “further details on other terms of this agreement, for example, whether China would relax on rare earth export restrictions.”
Heng Seng surged by 2.98% at 23,549.46, while the Hang Seng Tech index soared 5.16% to 5,447.35, their highest levels since March 27. China’s CSI 300 index was up by 1.16% to end the day at 3,890.60.
Indian equity markets cheered with significant gains following the ceasefire between India and Pakistan over the weekend. Nifty was up by 3.49% while the BSE Sensex gained 3.38%.
Japan’s Nikkei 225 closed at 37,644.26, up 0.38%. Meanwhile, South Korea's Kospi climbed 1.17% to settle at 2,607.33. Small-cap Kosdaq moved up 0.4% to 725.40.
Dow Jones Industrial Average shed 119.07 points, or 0.29% to close at 41,249.38, while S&P 500 tumbled 0.07% to close at 5,659.91. Nasdaq composite ended the session with minor cuts at 17,928.92.
