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Business Recorder
2 days ago
- Business
- Business Recorder
China stocks end higher as Sino-US trade truce sparks optimism
SHANGHAI: China stocks climbed on Wednesday, touching their highest levels in nearly three weeks, lifted by optimism over progress in US-China trade talks, although investors awaited further details on the framework agreed upon by the two countries. China's blue-chip CSI300 Index rose as much as 1.2% to its highest since May 23. Hong Kong's benchmark Hang Seng index climbed up to 1%, touching its strongest level since March 20. US and Chinese officials said on Tuesday they had agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade differences. 'This is positive news to the market. At least now there's a bottom line that neither side is willing to cross,' said Mark Dong, co-founder of Minority Asset Management. 'Going forward, both sides will move toward reducing the trade imbalance.' The two-day meeting in London followed a leader-to-leader phone call between US President Donald Trump and China's Xi Jinping last week after tensions between the countries flared, with each accusing the other of violating the Geneva deal. Zeng Wenkai, the chief investment officer at Shengqi Asset Management, said markets had likely expected the outcome. 'People have realised that kneeling gets you nowhere — in fact, it only invites more bullying,' Zeng said, adding that countries are now adopting a tougher stance in negotiations with the US The CSI Rare Earth Index gained more than 3%, while China's semiconductor index fell 0.1%. 'The details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US-produced chips to head East,' said Chris Weston, head of research at Pepperstone.
Mint
2 days ago
- Business
- Mint
China stocks end at nearly 3-week high as Sino-US trade truce sparks optimism
SHANGHAI, - China stocks climbed on Wednesday, touching their highest levels in nearly three weeks, lifted by optimism over progress in U.S.-China trade talks, although investors awaited further details on the framework agreed upon by the two countries. China's blue-chip CSI300 Index rose as much as 1.2% to its highest since May 23. Hong Kong's benchmark Hang Seng index climbed up to 1%, touching its strongest level since March 20. U.S. and Chinese officials said on Tuesday they had agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade differences. "This is positive news to the market. At least now there's a bottom line that neither side is willing to cross," said Mark Dong, co-founder of Minority Asset Management. "Going forward, both sides will move toward reducing the trade imbalance." The two-day meeting in London followed a leader-to-leader phone call between U.S. President Donald Trump and China's Xi Jinping last week after tensions between the countries flared, with each accusing the other of violating the Geneva deal. Zeng Wenkai, the chief investment officer at Shengqi Asset Management, said markets had likely expected the outcome. "People have realised that kneeling gets you nowhere — in fact, it only invites more bullying," Zeng said, adding that countries are now adopting a tougher stance in negotiations with the U.S. The CSI Rare Earth Index gained more than 3%, while China's semiconductor index fell 0.1%. "The details matter, especially around the degree of rare earths bound for the U.S., and the subsequent freedom for U.S.-produced chips to head East," said Chris Weston, head of research at Pepperstone. "But for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported." By market close, the CSI 300 Index rose nearly 1%, the Shanghai Composite Index gained 0.5% and the Hang Seng Index added 0.8%. Tech majors traded in Hong Kong advanced 1.1%. Chinese stocks have struggled for direction since April 2, when Trump announced his sweeping reciprocal tariffs. The CSI300 Index has barely budged from the April 2 level, and the Hang Seng Index gained around 5% during the period, both lagging the recovery among major global markets. China's auto stocks climbed nearly 2% after several major automakers, including BYD, Chery and Geely, pledged to pay suppliers within 60 days. This article was generated from an automated news agency feed without modifications to text.
Yahoo
2 days ago
- Business
- Yahoo
China's latest trade truce with US leaves investors none the wiser
NEW YORK/SINGAPORE (Reuters) — The latest trade truce between China and the United States offered investors the hope of an eventual deal that the feuding superpowers can live with, though the possibility of another tariff flare-up remained a risk for markets. The muted market reaction told its own story, as US and Chinese officials ended two days of talks in London on Tuesday with pledges to revive an agreement struck last month in Geneva, and remove China's export restrictions on rare earths — a sticking point in that deal. The guarded welcome from currency and stock investors shows that while the meeting ended in a truce, markets had also hoped for more and the lack of details means uncertainty is likely to remain high. The main positive takeaway was the talks indicated pragmatism on both sides, analysts said. "This is positive news to the market. At least now there's a bottom line that neither side is willing to cross," said Mark Dong, co-founder of Minority Asset Management in Hong Kong. Chinese stocks rose to near three-week highs, while U.S. stock futures were a touch lower. The U.S. dollar edged higher and China's yuan was steady. "For now, as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported," said Chris Weston, head of research at Australian broker Pepperstone. "The devil will be in the details but the lack of reaction suggests this outcome was fully expected." Markets plunged after President Donald Trump's "Liberation Day" tariff announcement on April 2 as investors worried about an impending recession but those fears eased as Trump rolled back most of the punitive tariffs, lifting stocks. The benchmark S&P 500 index (^GSPC) has risen 6.5% since then and is close to reclaiming a record high. Chinese stocks have underperformed as investors fret over a persistently weak economy but have nonetheless recouped losses to be back at the April 2 level. The latest plan to re-ink a deal might remove some of the extreme gloom scenarios for markets, but investors would need more concrete steps to fully rejoice. The broad impact of the sweeping duties in a trade war that could bring $600 billion in two-way trade to a standstill is being felt in both economies. Economists expect the damage from the tit-for-tat duties and volatility in financial markets would be an overhang on the global economy for months. Phillip Wool, chief research officer and lead portfolio manager at Rayliant Global Advisors, said investors bidding stocks back to record highs were significantly underestimating the damage already caused by such uncertainty this year. "I'm feeling more cautious and opportunistic than unconditionally bullish at this moment," he said. "If any major deal is reached, we could see stocks rally in response, but my sense is that's more emotion at this point, and the euphoria could be short-lived as new risks materialize.' China's economy needs the reprieve from tariffs that have hit its exports as the country battles deep deflationary pressures and weak consumption. Moreover, while the ultimate impact on U.S. inflation and the jobs market from the trade war remains to be seen, tariffs have hammered U.S. business and household confidence. That has left the dollar under pressure, down over 8% against major rivals this year, as investors worry about the U.S. economy and fiscal health. Trump's big bill to cut taxes and spend more has exacerbated worries about U.S. debt. Right now, the challenges facing Trump are aplenty, including a spectacular fallout with the world's richest person, Elon Musk, a tax bill that is under intense scrutiny and street protests in Los Angeles over his administration's immigration policy. That raises the stakes for a successful negotiation with China, and investors aren't ready to make hard bets on the outcome just yet.
RTHK
2 days ago
- Automotive
- RTHK
Hang Seng Index ends up on progress in trade talks
Hang Seng Index ends up on progress in trade talks The Hang Seng Index ended up 204.07 points, or 0.84 percent, at 24,366.94. File photo: RTHK Mainland Chinese and Hong Kong stocks climbed on Wednesday, lifted by optimism over progress in Sino-US trade talks, although investors awaited further details on the framework agreed upon by the two countries. In Hong Kong, the benchmark Hang Seng Index ended up 204.07 points, or 0.84 percent, at 24,366.94. In the mainland, the benchmark Shanghai Composite Index ended up 0.52 percent to 3,402.32. The Shenzhen Component Index closed 0.83 percent higher at 10,246.02. The gains came after US and Chinese officials said they had agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade differences. "This is positive news to the market," said Mark Dong, co-founder of Minority Asset Management. "At least now there's a bottom line that neither side is willing to cross. "Going forward, both sides will move toward reducing the trade imbalance." Zeng Wenkai, the chief investment officer at Shengqi Asset Management, said markets had likely expected the outcome. "People have realised that kneeling gets you nowhere – in fact, it only invites more bullying," Zeng said, adding that countries are now adopting a tougher stance in negotiations with the United States. The CSI Rare Earth Index gained more than 3 percent, while China's semiconductor index fell 0.1 percent. "The details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US-produced chips to head East," said Chris Weston, head of research at Pepperstone. "But for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported." Tech majors traded in Hong Kong advanced 1.1 percent China's auto stocks climbed nearly 2 percent after several major automakers, including BYD, Chery and Geely, pledged to pay suppliers within 60 days. (Reuters/Xinhua)
The Star
2 days ago
- Business
- The Star
China stocks near 3-week high as Sino-US trade truce sparks optimism
Market boost: China stocks rallied in late September, after the government issued more measures to support the economy. That helped fuel liquidity and temper price swings. — Bloomberg SHANGHAI: China stocks hit their highest levels in nearly three weeks on Wednesday, lifted by optimism over progress in U.S.-China trade talks, though investors awaited further details on the framework agreed by the two countries. China's blue-chip CSI300 Index rose as much as 1.2%, hitting its highest level since May 23. The Hong Kong's benchmark Hang Seng index climbed up to 1%, reaching its strongest level since March 20. U.S. and Chinese officials said on Tuesday they had agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare-earths while offering little sign of a durable resolution to longstanding trade differences. "This is positive news to the market. At least now there's a bottomline that neither side is willing to cross," said Mark Dong, co-founder of Minority Asset Management. "Going forward, both sides will move toward reducing the trade imbalance." The two-day meeting in London followed a rare leader-to-leader call between U.S. President Donald Trump and Chinese counterpart Xi Jinping on Thursday, after tensions between the countries flared with each accusing the other of violating the Geneva deal. The CSI Rare Earth Index jumped nearly 4% and shares of China's semiconductor index edged up 0.2%. "The details matter, especially around the degree of rare-earths bound for the U.S., and the subsequent freedom for U.S. produced chips to head East," said Chris Weston, head of research at Pepperstone. "But for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported." By the lunch break, the CSI 300 Index had risen nearly 1%, the Shanghai Composite Index gained 0.5% and the Hang Seng Index was up close to 1%. Tech majors traded in Hong Kong gained 1.2%. Chinese stocks have struggled for direction since April 2, when Trump announced sweeping reciprocal tariffs that threatened to upend the global trade order. The CSI300 Index has barely budged from the April 2 level, and Hong Kong's benchmark Hang Seng Index gained around 5% during the period, both lagging the recovery among major global markets. China's auto stocks rose 2.2% on Wednesday, after several major automakers - including BYD, Chery and Geely - pledged to pay suppliers within 60 days. - Reuters
