Investing.com – Asian equities extended their gains in afternoon trade on Monday, with weekend developments in U.S.-China trade talks in the spot light.
U.S. Treasury Secretary Steven Mnuchin said on Sunday that the trade war with China is now put on hold, while the two nations released a joint statement on Saturday that said China would buy more energy and agricultural commodities from the U.S. to “substantially” narrow the trade deficit between the two nations.
However, no dollar figure was mentioned in the joint statement, despite Trump demanded that China reduce its trade surplus by $200 billion in an initial round of talks held in Beijing earlier this month.
Chinese Vice Premier Liu He and senior American officials, including Trump, had a two days meeting in Washington last week to discuss trade matters.
Meanwhile, Chinese state media said on Monday that China had “stood its ground” and that the country “did not give in despite all the pressure.”
Liu He was cited in the article as saying the talks were “positive, pragmatic, constructive and productive.”
Separately, another piece published by a state-run newspaper reported on Monday that China must reduce their dependence on debt and promote the use of equity financing in the long term. Jiang Yang, vice-chairman of the China Securities Regulatory Commission (CSRC) was cited as saying such development would help boost the ability of local companies to invest and engage in R&D.
The Shanghai Composite and the Shenzhen Component traded 0.8% and 1.1% higher by 1:30PM ET (05:30 GMT). Hong Kong’s Hang Seng Index gained 1.2%.
Down under, Australia’s S&P/ASX 200 edged up 0.1% in afternoon trade.
Oil and gas producer Santos Ltd (AX:STO) made headlines on Monday after the company said it received an improved $10.84 billion offer from the U.S.-based Harbour Energy.
The new offer is equivalent to A$6.95 a share at an exchange rate of 75 U.S. cents to 1 Australian dollar, and is at an 11.2% premium to the last close of Santos shares on Friday.
The bid, if successful, would mark the biggest takeover of an Australian oil and gas producer, according to reports.
Elsewhere, Japan’s Nikkei 225 added 0.5%. Exports in April grew 7.8% from the same period a year ago, official data showed on Monday, compared with the median estimate for an 8.1% annual increase. Exports grew an annual 2.1% in March.
South Korea’s KOSPI was up 0.3%.