Hello and welcome to the details of Asian stocks climb as US-China trade talks raise hopes of tariff relief and now with the details
Nevin Al Sukari - Sana'a - This file picture shows pedestrians walking in front of an electronic board showing the opening numbers on the Hang Seng Index in Hong Kong on April 11. — AFP pic
HONG KONG, May 7 — Asian equities rose today after China and the US said they would hold trade talks at the weekend, fanning optimism that the superpowers can row back eye-watering tariffs that have heightened recession fears.
Beijing’s moves to ease some key monetary policy tools to kickstart the world’s number two economy boosted hope among investors who have been left punch drunk by Donald Trump’s explosive first few months in power.
US officials said Washington has been in talks in recent weeks with numerous countries to avoid Trump’s sweeping levies, with Japan and South Korea among the first in the queue.
But there has been no sign of engagement with China, save for a few US remarks that discussions were taking place.
However, after US markets closed both countries announced that top representatives would hold negotiations this weekend in Switzerland, the first since Trump’s “Liberation Day” tariffs unveiling on April 2.
Treasury Secretary Scott Bessent told Fox News that he and US Trade Representative Jamieson Greer will meet Chinese Vice Premier He Lifeng to lay the groundwork for future negotiations.
“We will agree what we’re going to talk about. My sense is that this will be about de-escalation, not about the big trade deal,” Bessent told The Ingraham Angle show.
“We’ve got to de-escalate before we can move forward.”
China’s commerce ministry vowed the country would “defend justice” and stand by its principles during the talks, adding that Washington “must face up to the serious negative impact of unilateral tariff measures on itself and the world”.
It also warned: “If the US talks in one way and acts in another, or even attempts to continue to coerce and blackmail China under the guise of talks, China will never agree.”
Trump has imposed new tariffs totalling 145 per cent on goods from China, with some sector-specific measures stacked on top, while Beijing retaliated with 125 per cent levies on US imports to China, along with more targeted measures.
News of the talks was met with excitement on stock markets, with Hong Kong, Shanghai, Singapore, Sydney, Seoul, Taipei, Wellington, Manila, Bangkok and Jakarta all in positive territory.
Tokyo fell with London and Paris. Frankfurt was flat.
Pakistan’s stock index sank more than six per cent at the open but India’s Sensex was flat after the two countries exchanged heavy artillery fire along their contested frontier today.
The clashes came after New Delhi launched missile strikes on Pakistan in a major escalation between the nuclear-armed neighbours following a deadly attack on the Indian-run side of Kashmir that India blames on Pakistan.
“Just as everyone’s throwing in the towel — calling end-of-days on the ‘Trump Trade War’ — the White House quietly unleashes a ‘trade deal’ teaser to yank markets off the cliff,” said Stephen Innes of SPI Asset Management.
“Traders who’d battened down the hatches are now scrambling to hoist sails, chasing any whiff of tariff relief like it’s pure alpha.”
Investors were also cheered by Beijing’s decision to cut a key interest rate and lower the amount of cash banks must keep in reserve — a move aimed at boosting lending — in its latest bid to reignite the stuttering economy.
The People’s Bank of China also said it would cut the rate for first-time home purchases with loan terms over five years as it continues to grapple with a property sector crisis that has hammered economic growth.
“The market has been expecting for monetary stimulus since the start of the year to boost credit growth and counter external uncertainty,” said David Chao at Invesco.
“Therefore today’s rate cuts are likely to satisfy the market’s demand for stimulus, at least for a while.”
In Washington the Federal Reserve is expected to hold interest rates again later today, though traders will be keeping a close eye on its post-meeting statement for an idea about its plans in light of Trump’s tariffs and his pressure to make more cuts. — AFP
These were the details of the news Asian stocks climb as US-China trade talks raise hopes of tariff relief for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at Malay Mail and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.
