China Stocks Surge Amid Renewed U.S.-China Trade Optimism

China's stock indices climbed to their highest points in nearly three weeks on Wednesday, as investors responded with optimism to progress in U.S.-China trade negotiations. The CSI300 Index surged by 1.2% and Hang Seng by 1%, driven by hopes for a stronger trade truce framework between the two nations.

Despite a lack of concrete resolution on trade differences, Chinese and U.S. officials have agreed to remove certain Chinese export restrictions, particularly on rare-earth elements. The leader-to-leader dialogue between U.S. President Donald Trump and China's Xi Jinping has further fueled investor sentiment.

While questions remain about the specifics of the agreement, particularly regarding rare-earth exports and U.S. chip sales, experts suggest that as long as progress continues, risk assets will be supported. Auto stocks also saw a 2.2% rise after automakers committed to timely supplier payments.

(With inputs from agencies.)