Chinese investors are loving the latest trade headlines

China Photos/Getty Images

If you thought a positive conclusion in trade negotiations between the US and China was largely priced in already, you’d be wrong.

Especially when it comes to Chinese markets.

In response to a confirmation from US President Donald Trump that a proposed increase in US tariffs on Chinese imports will now be extended beyond the previous March 1 deadline, Chinese stocks and yuan have rallied hard upon the resumption of trade on Monday, scaling fresh multi-month peaks as at the time of writing.

Here’s the scoreboard as at 1.10pm in Sydney.

Shanghai Composite 2,864.06 , 2.13%
SSE50 2,679.18 , 2.14%
Shenzhen Composite 1,508.90 , 2.14%
CSI300 3,604.72 , 2.40%
CSI500 4,882.80 , 2.21%
Hang Seng 29,009.98 , 0.34%
USD/CNY 6.6767 , -0.51%
USD/CNH 6.6788 , -0.33%

In stocks, the benchmark Shanghai Composite Index sits up 2.1% at 2,864.06 points, leaving it at the highest level since August 1 last year.

The composite has now rallied 17.5% since hitting a multi-year low of 2,440.9 in early January.

Investing.comShanghai Composite.

Similar gains are also being seen in other mainland indexes, especially in large cap stocks traded in Shanghai and Shenzhen.

The enthusiasm for all things China has extended to currency markets with the onshore traded yuan, or CNY, falling to as low as 6.6738 against the US dollar.

That’s a level that hasn’t been seen since mid July last year, moving the USD/CNY further away from the multi-decade high of 6.9763 set in late October.

Investing.comUSD/CNY

The moves in Chinese stocks and currencies are being replicated across the Asian region, albeit on a far smaller scale.

Here’s how Asian stocks are currently faring.

Australia ASX 200 6172.90 , 0.09%
NZ NZX 50 9313.43 , 0.05%
Japan TOPIX 1621.59 , 0.75%
Shanghai Comp 2864.77 , 2.16%
Shenzhen Comp 1508.90 , 2.14%
Sth Korea KOSPI 2231.77 , 0.06%
Sinagpore STI 3271.32 , 0.04%
Taiwan TAIEX 10376.48 , 0.52%
Philippines PSI 7962.13 , 0.39%
Indonesia JKSE 6517.27 , 0.24%
Malaysia KLCI Index 1719.42 , -0.12%
S&P 500 Futures 2799.5 , 0.30%

And FX markets.

AUD/USD 0.7151 , 0.34%
NZD/USD 0.6874 , 0.45%
USD/JPY 110.68 , 0.00%
USD/HKD 7.8478 , 0.00%
USD/KRW 1121 , -0.13%
USD/SGD 1.3501 , -0.06%
USD/TWD 30.77 , 0.07%
USD/PHP 51.97 , -0.12%
USD/MYR 4.065 , -0.27%
USD/IDR 14000 , -0.39%
USD/THB 31.28 , -0.10%
US Dollar Index 96.45 , -0.06%

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