Key points
- World’s two economic superpowers will step back from trade war
- US would decrease its 145pc duties on China to 30pc for 90 days
- China would cut its retaliatory steps to 10pc cent from 125pc
ISLAMABAD: Most Asian stocks extended gains Tuesday as investors continued to bask in the glow of the China-US tariff suspension that has fuelled hopes the world’s two economic superpowers will step back from a punishing trade war.
AFP reported equity markets across the world rallied with the dollar Monday after the two sides said they would slash most of their eye-watering tit-for-tat levies and hold talks to end a standoff that has stoked recession fears.
Global trading system
The development raised hopes that deals can be done with US to reduce or even remove some of the tolls unveiled by US President Donald Trump on his “Liberation Day” on April 2 that sent shivers through trading floors and raised concerns regarding the global trading system.
Top-level negotiators said after two days of talks in Geneva at the weekend that the United States would decrease its 145 per cent duties on China to 30 per cent for 90 days, while China would cut its retaliatory steps to 10 per cent from 125 per cent, AFP reported.
“Total reset”
Trump described the move as a “total reset” and said talks with counterpart Xi Jinping could soon follow.
CNBC cited US Treasury Secretary Scott Bessent as saying that he expected officials would meet again in the coming weeks to reach “a more fulsome agreement”.
After piling higher on the news Monday, most of Asia’s markets started Tuesday on the front foot. Tokyo was up more than one per cent with Taipei, while Shanghai, Sydney, Singapore, Seoul, Wellington and Manila were also well up.
