Asian markets rip higher as Trump praises 'very productive' trade negotiations with China

  • Asian markets rocketed higher Monday on trade-war optimism.
  • The biggest gains in China came from the Shenzhen Component Index, which rose just shy of 4% during Monday trading.
  • Trade discussions between the US and China ended over the weekend, with both nations seemingly positive about them.
  • “Trade negotiators have just returned from China where the meetings on Trade were very productive,” President Donald Trump tweeted on Saturday night.
  • US markets are closed Monday in observance of Presidents 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 trade negotiations between the US and China.

The two nations are discussing their future trading relationship following the tit-for-tat exchange of tariffs during 2018.

Representatives from the two countries began talks in Beijing last week with the aim of making progress toward a trade deal of some form before the 90-day deadline imposed at the G20 summit in Argentina late in 2018.

Talks ended over the weekend, with President Donald Trump seemingly enthused by 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!”

Though it is true that the US has raised billions of dollars from increased tariffs during the trade war, the tweet repeated Trump’s debunked claim that US duties on Chinese goods were paid for by China; economists say the tariffs are generally paid for by US companies that import goods.

Still, Trump’s positivity around the talks, alongside a positive reaction to the talks from Chinese officials, has helped to push Chinese stocks to their best individual session in about three months, with all mainland indexes rising 2% or more on the day.

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“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, the 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 ripped higher, with the biggest gains coming from the Shenzhen Component Index, which gained just shy of 4% during Monday trade. Elsewhere, the Shanghai Composite was up 2.7%, the China A50 was 2.6% higher, and the Dow Jones Shanghai gained 2.9%.
  • In Europe, stocks were little moved, but most indexes nursed small losses. The Euro Stoxx 50 broad index was down 0.2%, while Germany’s DAX lost 0.5%. Stocks in Spain and Italy bucked the broader trend on the continent and saw gains of about 0.4%.
  • US stocks were closed Monday in observance of Presidents Day.

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