Shanghai Jumps 5.5 Percent On Trump Remark, HK Up

The Shanghai Composite index has jumped 5.5 percent on Monday afternoon session after President Donald Trump announced he was extending a deadline for escalating tariffs on Chinese imports.

The benchmark was trading at its highest level in about eight months on the news that the truce in a trade war between the world's two biggest economies would persist as the two sides talk out their differences.

Other markets in the region also rose, but by smaller margins. In Hong Kong, Hang Seng index added 0.5 percent while Tokyo's Nikkei 225 also climbed 0.5 percent.

Sydney and Singapore each put on 0.1 percent, while Seoul was flat, Taipei added 0.4 percent and Jakarta rose 0.3 percent.

Soon after Trump tweeted out his message, the Xinhua news agency added that the two sides had "made substantial progress on specific issues" including on transfer of technology, intellectual property and agriculture.

"This is a sigh of relief," said Ben Emons, managing director for global macro strategy at Medley Global Advisors. "Markets will still keep a level of caution, but this news is encouraging," he told Bloomberg TV.

The news also fired currency markets with the yuan extending gains to a seven-month high, while other high-yielding, riskier units were also up against the US dollar. (AFP)

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