Asian stocks surge as Trump reportedly approves trade deal

  • Asian stocks surge as Trump reportedly approves trade deal

Asian stocks surge as Trump reportedly approves trade deal

The so-called Phase One deal announced, but still not signed, on Friday suspends the planned imposition of new 15% tariffs on Sunday that would have hit $160 billion in Chinese consumer goods just weeks before Christmas, including $115 billion worth of iPhones, laptops and other electronics.

Chinese officials said Friday that the a Phase One agreement has been reached with the US on trade that includes a phased rollback of tariffs.

Trump called it 'an wonderful deal for all'.

Trump said on Thursday the USA was "very close" to nailing down a deal. Beijing said the agreement included nine chapters covering intellectual property, technology transfers, agricultural products, dispute settlement and other topics.

Mr. Wang said that the deal would need to first go through "legal procedures" in both countries before it is signed. "The agreement will significantly benefit small businesses, farmers, and ordinary Americans", said Alfredo Ortiz, president and CEO of the Job Creators Network in a statement.

Trump has imposed wave after wave of USA tariffs on Chinese goods and China has responded in kind.

And if the tariffs were not suspended, Beijing officials would likely have retaliated with more tariffs on USA goods and possibly by delaying additional trade talks until after the U.S. presidential election in November 2020, according to reports.

However, Trump had changed his mind on deals with China before.

For Beijing, reducing even some of the tariffs that have been imposed since past year represents a win for President Xi Jinping, who is also facing pressure to not give in to the other side.

Ensuring what senior leaders have described as a "balanced" agreement has been a priority for Chinese negotiators throughout the process.

Beijing has so far remained silent. That led the Trump administration to ramp up its trade war with China, putting a drag on the world economy. The Wall Street Journal reported that the deal involved roll back of existing levies on Chinese goods. President Trump has previously mentioned, however, that China would purchase up to $50 billion in agricultural goods. Yet he hasn't given up his desire to claim victory.

In return, China has promised to buy large quantities of USA soybeans, poultry and other agricultural products.

Trump tweeted, "we have agreed to a very large Phase One Deal with China".

The deal would provide more protection for foreign companies in China, and Chinese companies in the U.S., Chinese officials said. The U.S. already imposed a 15% import duty in September on the majority of Chinese-made shoes and clothing, providing more incentive for companies to move their sourcing to lower-cost alternatives such as Vietnam and Cambodia.

The S&P 500 and chip stocks including Qorvo and Advanced Micro Devices pulled back a bit after details of the deal were announced in Beijing during NY trading hours, while Apple traded up 0.6%, on track for another record high close. "They want it, and so do we!"