China stocks skyrocket after Trump and Xi agree to a pause in tariff escalation

Asia Pacific markets mostly rose on Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on slapping additional tariffs in an effort to resume trade talks.

Mainland Chinese shares soared on the day. The Shanghai composite added 2.22% to about 3,044.90, while the Shenzhen component soared 3.84% to 9,530.46. The Shenzhen composite also added 3.464% to approximately 1,616.55. The CSI 300 index, which tracks the largest listed stocks on the mainland, added 2.88% to around 3,935.81.

In Japan, the Nikkei 225 jumped 2.13% to close at 21,729.97, with shares of index heavyweight and robot-maker Fanuc soaring about 3%. The Topix index also gained 2.17% to finish its trading day at 1,584.85.

South Korea’s Kospi closed fractionally lower at 2,129.74 as shares of industry heavyweight Samsung Electronics fell 0.85%. Australia’s S&P/ASX 200 rose 0.44% to finish its trading day at 6,648.10.

Hong Kong’s Hang Seng index was closed on Monday for a holiday, as protests rocked the city on the anniversary of its return to Chinese rule.

The moves came after Trump and Xi emerged from a meeting on the sidelines of the Group of 20 summit in Osaka, Japan. Both sides confirmed in separate comments that they did not plan to levy any new tariffs against each other’s products at the present time.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.572 after seeing levels below 96.0 last week. The offshore Chinese yuan saw strong gains against the dollar to 6.8468 after tracking above 6.87 for much of the previous trading week, while its onshore counterpart was at 6.8474.