Asian markets gained in early trading Monday, after fears of a trade war between the U.S. and China receded following weekend developments.
On Sunday morning, U.S. Treasury Secretary Steve Mnuchin said the Trump administration would delay implementing tariffs on Chinese goods, and would “put the trade war on hold” while details of a trade deal are worked out. U.S. trade representative Robert Lighthizer later said the U.S. may still impose tariffs. On Saturday, after high-level deliberations in Washington, China agreed to buy more U.S. goods, though its negotiators refused to put a dollar amount on it.
Hong Kong’s Hang Seng Index HSI, +1.27% jumped more than 1% Monday, with strong performances from tech and financial stocks. Smartphone component-makers Sunny Optical Technology Group Co. 2382, +2.44% and AAC Technologies Holdings Inc. 2018, +5.20% each surged, as did insurer AIA Group Ltd. 1299, +2.57% .
Taiwan’s Taiex Y9999, +1.25% gained on the back of Taiwan Semiconductor Manufacturing Co. 2330, +2.68% , which rose more than 2.5% after pulling back more than 4% last week. Stocks in Shanghai SHCOMP, +0.49% , Singapore STI, +1.13% and Malaysia FBMKLCI, +0.48% advanced as well.
Japan’s Nikkei NIK, +0.51% and South Korea’s Kospi SEU, +0.25% edged higher, despite losses from steelmakers such as Kobe Steel Ltd. 5406, -0.91% and Hyundai Steel Co. 004020, -0.46% . Shares of Korea’s LG Electronics 066570, -0.31% made up early losses following the death of its 73-year-old chairman, Koo Bon-moo.
Australia’s S&P/ASX 200 XJO, +0.03% rose, buoyed by Santos Ltd. STO, +2.88% , which jumped higher after receiving a $10.84 billion buyout bid from U.S.-based Harbour Energy, an 11% premium of Santos stock as of Friday’s close, according to Reuters.
Stocks in the U.S. were poised to jump higher when the market opens Monday, with Dow Jones futures YMM8, +0.86% up 204 points, or 0.8%, with S&P 500 futures ESM8, +0.65% and Nasdaq futures NQM8, +0.86% up as well.