- Asian markets rocket higher Monday on trade war optimism.
- Chinese markets have ripped higher, with the biggest gains coming from the Shenzhen Component index, which gained just shy of 4% during Monday trading.
- Trade discussions between the US and China ended over the weekend, with both nations seemingly positive about progress made during the talks.
- “Trade negotiators have just returned from China where the meetings on Trade were very productive,” President Trump tweeted on Saturday night.
- US markets are closed Monday in observance of President’s Day.
- You can follow the latest market action at Markets Insider.
Asian markets surged to start the week Monday as investors took heart from positive comments surrounding ongoing trade negotiations between the US and China.
The two nations are in the midst of discussions over their future trading relationship following the tit-for-tat exchange of tariffs during 2018.
Representatives from the Trump and Xi administrations began talks in Beijing last Monday, with the aim of making progress towards a trade deal of some form before the 90 day deadline imposed at the G20 in Argentina late in 2018.
Talks ended over the weekend, with President Trump seemingly enthused by the progress made during the discussions.
“Trade negotiators have just returned from China where the meetings on Trade were very productive,” he tweeted on Saturday night.
“Now at meetings with me at Mar-a-Lago giving the details. In the meantime, Billions of Dollars are being paid to the United States by China in the form of Trade Tariffs!”
Trump’s words, alongside a positive reaction to the talks from Chinese officials has helped to push Chinese stocks to their best individual session in around three months, with all mainland indexes rising 2% or more on the day.
“In the absence of data, politics (trade) is likely to dominate markets. The US and China resume trade talks in Washington this week. Asian markets have strengthened on hopes and dreams of a trade deal,” Paul Donovan, chief global economist at UBS Wealth Management said in a morning email.
“US President Trump reiterated that the 1 March tax-hike deadline could be extended. Chinese officials sounded positive (more positive than US officials) about a deal.|
Here’s the scoreboard as of 10.05 a.m. GMT (5.05 a.m. ET):
- Chinese markets have ripped higher, with the biggest gains coming from the Shenzhen Component index, which gained just shy of 4% during Monday trade. Elsewhere, theShanghai Compositewas 2.7% up, theChina A50was 2.6% higher, and theDow Jones Shanghaigained 2.9%.
- In Europe, stocks were little moved, but most indexes nursed small losses. TheEuro Stoxx 50broad index was down 0.2%, while Germany’sDAXlost 0.5%. Stocks in Spain and Italy bucked the broader trend on the continent, and saw gains of around 0.4%.
- US stocks will be closed Monday in observance of President’s Day.