Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Chinese Equities Surge More Than 3% After Trump Delays Tariff Deadline

Published 02/24/2019, 10:35 PM
Updated 02/24/2019, 10:35 PM
© Reuters.

© Reuters.

Investing.com - Chinese equities jumped more than 3% in morning trade on Monday after U.S. President Donald Trump announced that he would delay additional tariffs on Chinese goods, citing “substantial progress” in bilateral talks.

The Shanghai Composite and the Shenzhen Component traded 3.3% and 4.3% higher by 10:15 PM ET (03:15 GMT).

Hong Kong’s Hang Seng Index edged up 0.2%. Shares of Chinese network equipment firm ZTE Corp (HK:0763) jumped 8%, after leaping as much as 14% earlier.

Trump said on Twitter on Sunday that he will be delaying U.S. tariff hike on China that was initially scheduled to start on March 1.“I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues,” said the President.

“I will be delaying the U.S. increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement,” he added.

His comments came after China and the U.S. concluded the latest series of trade meetings in Washington over the weekend.

Despite the positive tweet by Trump, Bloomberg said the two sides have not yet agreed on certain details of the enforcement in a currency deal.

Citing four people familiar with the matter, the report said the U.S. is hoping to ensure Beijing will live up to its promise to not depreciate the yuan, which fell over 5% in 2018.

Trump has previously accused China of deliberately devaluing its currency to gain a competitive advantage.

Elsewhere in Asia, Japan’s Nikkei 225 gained 0.4%.

South Korea’s KOSPI was little changed at 2,229.98 ahead of a second meeting between Trump and North Korean leader Kim Jong Un.

“Chairman Kim realizes, perhaps better than anyone else, that without nuclear weapons, his country could fast become one of the great economic powers anywhere in the World,” Trump said on Twitter over the weekend as he prepared to depart to Vietnam for the meeting.

Down under, Australia’s ASX 200 slipped 0.1%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.