US-China trade war: Return of talks pushes up Asian markets
Asian stocks rallied overnight after the US and China announced that trade talks were back on the table, as investors hoped for a thawing of tensions between the two superpowers.
China’s Shanghai Composite index rose 1.1 per cent, while Japan’s Nikkei rose 2.1 per cent and its Topix index rose 1.8 per cent.
Hong Kong’s Hang Seng index rose in early trading before dropping later in the day after the territory’s leader Carrie Lam announced withdrawal of a controversial extradition bill which has sparked three months of protests.
Trade talks between the US and China will resume in early October in Washington, China’s commerce ministry said on Thursday.
Concern has grown among investors in recent weeks that escalations in the already bitter trade war could trigger a global recession.
The most recent move saw Washington slap 15 per cent tariffs on a variety of Chinese goods on Sunday – including footwear, smart watches and flat-panel televisions. Beijing, meanwhile, imposed new duties on US crude.
In retaliation, China has also imposed tariffs on some of the US goods on a $75bn target list. Beijing did not specify the value of the goods that face higher tariffs.
Read more: UBS cuts global growth outlooks as US-China trade war bites
CMC Markets analyst David Madden said: “Global equity markets pushed higher yesterday as a feeling of optimism circulated around the globe.
“It was announced overnight that US and Chinese delegates will meet in October to discuss trade. Combined with the developments in Hong Kong, it helped the positive outlook in Asia.”
Main image credit: Getty