China markets up on positive trade news

Investing.com – Stock markets in China and Hong Kong were trading higher Monday morning following news that China will reduce tariffs on tech and some agricultural products on Jan. 1 and that the state-backed semiconductor fund will sell some of its holdings in some key tech companies.

China’s rose 0.83% by 09:07 PM ET (02:07 GMT). The Shenzhen Component was down 0.41%.

Hong Kong’s rose 0.31%.

China´s finance ministry announced early Monday morning plans to cut tariffs on more than 850 products such as pork and other agricultural commodities.

Beijing’s announcement follows a Friday tweet by U.S. President Donald Trump, in which he remarked on the good momentum of the Sino-U.S. trade talks, saying he had “a very good talk” with Chinese President Xi Jinping and noting that “formal signing being arranged”.

On Monday, the Tariff Commission of China’s State Council said reducing tariffs would be “conducive to reducing import costs, promoting the orderly and free flow of international and domestic factors, and promoting the establishment of a new system of a higher level, open economy.”

Putting a drag on some Chinese tech stocks, however, the National Integrated Circuitry Investment Fund, known as the “Big Fund”, said it will partially divest from its investments in Shenzhen Goodix Technology, Hunan Goke Microelectronics and Gigadevice Semiconductor after big gains this year.

Japan’s was also up, trading 0.21% higher after losing 0.20% on Friday, following a climb in the yen.

Bucking the upward trend, South Korea’s was down 0.23% and Australia’s slipped 0.28%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.