HEADLINE Nerves calmed, stocks climb after Xi's address

HEADLINE

Nerves calmed, stocks climb after Xi's address

Agencies

14:19, April 10, 2018

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Photo: Xinhua

Stock markets rallied Tuesday after Chinese President Xi Jinping eased worries over a simmering US trade conflict by promising new measures to open his country's massive economy "wider and wider".

According to Bloomberg News, appetite for risk shows signs of returning to markets after Xi Jinping's latest speech

"Xi's speech sends a positive signal to the market since he backs globalisation and the opening up of China market," Linus Yip, a strategist at First Shanghai Securities, told Bloomberg News. "Investors were very worried about trade disputes, while his speech calms the nerves a lot. The concern about trade disputes in near-term are still here however, since what Xi pictures is a very long-term picture."

After starting the day cautiously, dealers pounced on the comments as a sign that a possible trade war between the world's top two powers may be averted.

Shares from Sydney to Hong Kong rose alongside oil and metals and Treasuries extended declines with gold and the yen. 

Shanghai climbed 0.5 percent, Shenzhen also saw a 0.16 percent increase, Hong Kong jumped 0.9 percent and Tokyo added more than one percent by the break.

Sydney, where a number of firms are listed that rely on China trade, rose 0.8 percent, Singapore put on 0.2 percent and Seoul added 0.3 percent.

There were also healthy gains in Wellington and Indonesia.

In initial deals, London's benchmark FTSE 100 index of major blue-chip companies advanced 0.6 percent to 7,238.30 points.

In the eurozone, Frankfurt's DAX 30 index rose almost 1.1 percent to 12,389.90 points, and the Paris CAC 40 won nearly 0.7 percent to stand at 5,299.58 compared with Monday's closing level.

In a closely watched speech at the Boao Forum – dubbed the Asian Davos – Xi pledged a "new phase of opening up", adding that Beijing "does not seek a trade surplus" and wants to boost imports.

Xi said Cold War and zero-sum mentalities were "out of place," and backed free trade and dialogue to resolve disputes in his keynote speech that had been highly anticipated by traders for any response to the barrage of US tariff threats.

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