Stocks jump as China ‘considers US tariff exemptions'
Stocks jump as China 'considers US tariff exemptions'
Stock markets jumped after it was said China is considering exempting some US goods from its 125pc tariffs.
The Nikkei in Japan rose 1.8pc and the Hang Seng in Hong Kong was up 1.1pc after reports a Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs.
European stocks were higher in premarket trading after Reuters reported China is asking companies to submit their own requests for items to be spared duties.
American Chamber of Commerce in China president Michael Hart said: 'The Chinese government, for example, has been asking our companies what sort of things are you importing to China from the US that you cannot find anywhere else and so would shut down your supply chain.'
A list of 131 categories of products eligible for exemptions was circulating widely on social media and among businesses and trade groups on Friday.
Stocks were already on track for a second week of gains after Donald Trump signalled he could reduce tariffs against China.
Meanwhile the White House hinted that its first trade deal could be with South Korea, saying that the talks are progressing faster than it expected.
7:12AM
Good morning
Thanks for joining me. Stock markets were climbing after it was said that China is considering some exemptions to its 125pc tariffs on US goods.
Asian markets rose and Europe was on track to make gains at the open after Reuters reported a Ministry of Commerce taskforce was collecting lists of items that could have duties removed.
5 things to start your day
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Workless youths won't get out of bed for less than £40k, Lords told | Claim fuels fears that young people have lost interest in finding a job
Top Goldman Sachs banker joins UK exodus in wake of tax raid | Billionaire property investors the Livingstone brothers have also quit Britain
Ben Marlow: Reeves has wrecked the hopes of China's high street predator | Shein was ruthlessly exploiting a tax loophole in its bid to conquer the West – until now
What happened overnight
Asian stock markets headed for a second straight week of gains as investors focused on signs the US and China were prepared to pull back from their trade war.
Tech stocks were lifted after Google parent Alphabet also beat profit expectations and reaffirmed AI spending targets, pushing its shares up nearly 5pc in after-hours trade in New York.
The dollar, which has taken a beating through a volatile few weeks of tariff announcements found a footing around $1.328 to the pound and $1.133 per euro.
In Hong Kong, the Hang Seng rose 1pc and there were small rises for mainland China's Shanghai Composite and blue chip CSI300.
In Japan, the Nikkei was up 1.8pc and has regained all its losses since Trump's announcement of the highest US tariffs in 100 years.
On Wall Street, major stock indexes rose yesterday. The Dow Jones Industrial Average rose 1.2pc, to 40,093.40, the S&P 500 rose 2pc, to 5,484.77 and the Nasdaq Composite rose 2.7pc, to 17,166.04.
In the bond market, the yield on 10-year US Treasury notes fell to 4.325pc from 4.362pc late on Wednesday.
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