Asian markets gained ground after China said it will resume trade talks with the US

Thomas Peter-Pool / Getty Images
  • China‚Äôs Ministry of Commerce plans to hold low-level trade discussions with the US in late August.
  • Chinese markets rose on the news, as stocks pared early losses and the currency strengthened.
  • There has been no immediate response from US Treasury.

A Chinese delegation plans to hold trade talks with US representatives later this month. It will mark the first time the two sides have got together since negotiations broke down in early June.

Stocks in China have pared early losses and the Chinese yuan strengthened following the news.

China’s benchmark Shanghai Composite index initially climbed back into positive territory after the lunch break, but is now falling again:

Investing.com

Both the off-shore (CNH) and on-shore (CNY) traded yuan had also gained ground, falling back below 6.9 per US dollar.

US stock market futures are also pointing higher, with Dow futures up by around 0.4% in Asian trade.

And base metals have come off their lows after getting clobbered overnight. Copper is up by around 1% in Asian trade, with zinc and nickel both up by more than 3% while gold has edged higher.

The Chinese Ministry of Commerce said a negotiating team led by Vice Minister of Commerce Wang Shouwen will meet with the US in late August.

US representatives will be led by Under Secretary of Treasury for International Affairs David Malpass, Reuters reports.

The last official talks between the two sides were US Commerce Secretary Wilbur Ross and Chinese Vice Premier Liu He.

In addition, the absence of US Treasury Secretary Steven Mnuchin from the next round of talks indicates that it will be a lower-level discussion.

Both countries have been involved in a tit-for-tate escalation since the first round of US tariffs went into effect in early July.

The US is scheduled to impose a 25% tariff on another $US16 billion worth of Chinese goods on August 23. Last week China announced that an equivalent tariff against the US would go into effect the same day.

According to Reuters, the US Treasury is yet to provide an immediate response to the announcement in China.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.