Asian Stock Rebounds Following China-US Trade Truce
Traders of Asian stocks, and the Asian stock market in general, recently have a sigh of relief following the announcement of a trade truce between China and the United States. The announcement was also well received by the traders as the Asian stock market rallied with a $325 billion rebound in market value.
The effect of the trade truce was also felt across the globe. The Dow Jones Industrial Average went up by 287.97 points to reach 25,826.43. The Nasdaq Composite went up by 1.5 percent and ended the day with 2,790.37 points. Amazon and Apple's market value even went up by 4.9 percent and 3.5 percent, respectively. At its peak, the Dow Jones Index gained as much as 442 points.s
According to recent market data, $325 billion was added to companies in the MSCI Asia Pacific Index. This represents an increase of around 2 percent. Market observers have seen this is a positive start for the month of December. The announcement of the trade truce boosted both the Shanghai Composite Index and the Hang Seng Index by as much as 2.6 percent each. Boosts in the value of the Yuan was also seen as an optimistic response from investors.
Based on market data, the last time the Asian market reached this level of boost was in October. Traders and companies alike welcome the positive news regarding the trade truce between China and the United States, two of the world's biggest economies. U.S. President Donald Trump even went as far as saying that Chinese President Xi Jinping is looking forward to a deal that will end the trade war.
At the start of the trading week, it would appear that the trade truce was well received by the global market. This came on top of the announcement that the United States is also planning to postpone the planned tariff against Chinese goods. The said cancellation will reportedly run for three months
According to President Trump, China has agreed to "reduce and remove" the car import charges levied against American cars. On the other hand, Chinese Foreign Ministry spokesperson Geng Shuang declined to comment on the issue of changes with regards to changes in vehicle tariffs. Regarding its effects on the market, futures contracts on the S&P 500 Index rose by as much as 1.9 percent within the first minutes of trading and have stayed relatively the same over the course of the trading day.