By MarketWatch and Associated Press
Stocks jump in Japan, mainland China
Asian markets mostly gained in early trading Monday, after the U.S. and China over the weekend agreed to a timeout in their tariff war and agreed to resume trade negotiations.
After meeting with China's President Xi Jinping on Saturday at the G-20 summit in Japan, President Donald Trump said that current tariffs would remain in place, but new ones would be placed on hold for the "time being." Trump said his talks went "even better than expected" and that "we're going to work with China where we left off." Despite his optimism, the U.S. and China remain entrenched in their positions, and it is unclear how long it may take to reach a final agreement. The two sides haven't met for formal negotiations since talks broke off in early May.
Japan's Nikkei rose 1.7%. The Shanghai Composite gained 1.9% and the smaller-cap Shenzhen Composite surged 2.4%, despite data that China's manufacturing activity slumped into contraction territory in June. South Korea's Kospi was about flat, while benchmark indexes in Taiwan , Singapore and Indonesia advanced. Australia's S&P/ASX 200 gained 0.6%. Hong Kong's market was closed for a holiday.
"After spending the better part of two months in trade war purgatory and with G-20 done and dusted, risk markets have responded to Saturday's events in a reveller tone," Stephen Innes, managing partner at Vanguard Markets, said in a note Monday. "Indeed, investors heaved a massive, but exhausted, sigh of relief."
"The biggest question on everyone's mind is will any armistice stick or will history repeat, and trade war gridlock set in?" he added.
Among individual stocks, Japan Steel surged in Tokyo trading. Sony and robotics maker Fanuc also rose, while Rakuten slid. In Hong Kong, food processor WH Group fell, along with Wharf Real Estate and PetroChina . Samsung and LG Electronics declined in South Korea. Foxconn and Taiwan Semiconductor gained in Taiwan, and Oil Search advanced in Australia.