Asian markets jumped on Thursday, with Japanese stocks surging more than 2.5%, after U.S. President Donald Trump signed off on a phase-one trade deal with China.
China’s Shanghai Composite and the SZSE Component both advanced 1.2% by 10:36 PM ET (02:36 GMT). Hong Kong’s Hang Seng Index surged 2.0%.
Bloomberg cited people familiar with the matter and said that a new wave of American tariffs on Chinese goods, which was originally scheduled to be imposed on Dec. 15, will now be averted under the trade deal. In return, China has promised to buy more U.S. agricultural goods.
Officials also looked into the option to reduce existing duties on Chinese products, according to the sources, which noted that while the terms of the agreement have been agreed, the legal text has not yet been finalized.
The news sent global equities higher today. China’s yuan also surged most in a year.
In other news, Reuters cited government officials and reported overnight that Chinese President Xi Jinping is planning to establish a yuan-denominated stock exchange in Macau.
Xi is expected to make the announcement when he travels to Macau during the 20th anniversary of the former Portuguese colony’s return to Chinese rule
The Nikkei 225 jumped 2.7% even after the Bank of Japan’s Tankan survey showed business confidence at big Japanese manufacturers worsened in the three months to December to its lowest level in nearly 7 years.
South Korea’s KOSPI traded 1.3% higher.
Down under, Australia’s ASX 200 was up 0.5%.
