FX.co ★ China Stocks Rise as US, China Agree to Lower Tariffs

On Monday, the Shanghai Composite index climbed 0.82% to finish at 3,369, while the Shenzhen Component index surged by 1.72%, closing at 10,301. This performance marked a peak not seen in over a month for mainland stocks, coinciding with a notable easing of trade tensions between the US and China following their agreement to suspend the majority of tariffs on each other's goods. US Treasury Secretary Scott Bessent confirmed a 90-day halt to the tariffs, alongside a substantial reduction in existing tariffs, indicating a significant move toward trade resolution. Concurrently, economic data released over the weekend highlighted continued deflationary trends in China. Consumer prices experienced a decline for the third consecutive month in April, with producer prices dropping at the quickest rate in six months. This reflects the enduring weakness in domestic demand, notwithstanding governmental efforts to boost consumption. Leading the market gains were technology stocks, with notable performances from East Money, which rose by 4.3%, Avic Chengdu with an impressive 120% increase, Luxshare Precision up by 6.4%, Eoptolink Technology advancing by 3.3%, and Shijiazhuang Changshan gaining 3.4%.