Trade Truce Boosts Chinese Markets and Yuan
Chinese stocks soared and the yuan strengthened following a U.S.-China agreement to significantly reduce reciprocal tariffs, signaling a de-escalation in the trade war. This 90-day truce propelled the Hang Seng Index upwards, with the yuan reaching a six-month high, offering newfound market stability.
In a significant easing of ongoing trade tensions, Chinese stocks soared, and the yuan appreciated after the U.S. and China agreed to cut reciprocal tariffs. This move follows discussions held in Geneva over the weekend, where U.S. Treasury Secretary Scott Bessent confirmed a 90-day halt on tariff measures.
The announcement led to a more than 3% rise in Hong Kong's Hang Seng Index, with the Hang Seng Tech Index surging over 5%. Meanwhile, the yuan reached a six-month high against the dollar, influenced by capital movement away from U.S. markets.
Market observers like William Xin lauded the truce, noting it exceeds prior expectations. The deal is expected to provide some stability amidst a volatile economic backdrop, with China's stock indices witnessing notable gains as tensions ease.
(With inputs from agencies.)
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