In Hong Kong, the stock market was mixed, with the benchmark Hang Seng Index putting on 29.17 points, or 0.13 percent, to end at 22,691.88.
The Hang Seng China Enterprises Index lost 0.23 percent to end at 8,242.25 while the Hang Seng Tech Index dipped 0.75 percent to end at 5,200.04.
Beijing’s moves to ease some key monetary policy tools to kickstart the world’s number two economy boosted hope among investors who have been left punch drunk by Donald Trump’s explosive first few months in power.
US officials said Washington has been in talks in recent weeks with numerous countries to avoid Trump’s sweeping levies, with Japan and South Korea among the first in the queue.
But there has been no sign of engagement with China, save for a few US remarks that discussions were taking place.
However, after US markets closed both countries announced that top representatives would hold negotiations this weekend in Switzerland, the first since Trump’s “Liberation Day” tariffs unveiling on April 2.
Treasury Secretary Scott Bessent said he and US Trade Representative Jamieson Greer will meet Vice Premier He Lifeng to lay the groundwork for future negotiations.
“We will agree what we’re going to talk about. My sense is that this will be about de-escalation, not about the big trade deal,” Bessent said.
“We’ve got to de-escalate before we can move forward.”
China’s commerce ministry vowed the country would “defend justice” and stand by its principles during the talks, adding that Washington “must face up to the serious negative impact of unilateral tariff measures on itself and the world”.
It also warned: “If the US talks in one way and acts in another, or even attempts to continue to coerce and blackmail China under the guise of talks, China will never agree.”
News of the talks was met with excitement on stock markets, with Shanghai, Singapore, Sydney, Seoul, Taipei, Wellington, Manila, Bangkok and Jakarta all in positive territory.
Tokyo fell with London and Paris. Frankfurt was flat.
Investors were also cheered by Beijing’s decision to cut a key interest rate and lower the amount of cash banks must keep in reserve, a move aimed at boosting lending, in its latest bid to reignite the stuttering economy.
The People’s Bank of China also said it would cut the rate for first-time home purchases with loan terms over five years as it continues to grapple with a property sector crisis that has hammered economic growth.
“The market has been expecting for monetary stimulus since the start of the year to boost credit growth and counter external uncertainty,” said David Chao at Invesco.
“Therefore today’s rate cuts are likely to satisfy the market’s demand for stimulus, at least for a while.” (AFP/Xinhua)
