Chinese stocks had their best day since early November, jumping more than 3 per cent, as investors held on to the belief that Beijing and Washington will resolve a trade dispute that has hung over the country’s economy.
Sentiment towards Chinese equities has brightened this year in a sharp reversal from 2018, when anxiety over the trade tussle with the US, and evidence of a slowdown in spending by domestic consumers, left the country’s stocks as the world’s worst performing major market.
US President Donald Trump, who has lambasted China for unfair trade practices, tweeted over the weekend that US negotiators had “very productive” meetings in Beijing. Should the talks, which resume this week in Washington, fail to deliver an agreement by the end of the month then US tariffs on $200bn of Chinese exports will move sharply higher.