Stocks rise on Wall Street as rally stretches to fourth day


The US will keep 25% tariffs on about $250 billion of Chinese imports, along with 7.5% duties on roughly $120 billion of Chinese imports, the office of the US trade representative said.

Positive sentiment helped push the MSCI's broadest index of Asia-Pacific shares outside Japan to its highest level since April 18.

US stocks rallied in morning trading on Monday, rising with European and several Asian markets after China reported surprisingly strong signs of life.

"It's good news but we can't celebrate yet", said Mark Mobius, founding partner of Mobius Capital Partners and former executive chairman of the Templeton Emerging Markets Group. The deal involves China buying more American farm products and making new commitments on intellectual property, while the US will suspend new levies and halve existing tariffs on $120 billion of Chinese imports.

While China has agreed on these concessions, it expects the same from the well: alongside the announcement of the deal, it was also mentioned that the United States tariffs on some Chinese export will be reduced.

As it turns out, the USA seems more enthusiastic about the deal than China.

The blue-chip CSI300 index rose 0.5%, to 3,987.55, while the Shanghai Composite Index added 0.6% to 2,984.39, its highest close since November 8. Real-estate investment trusts rose 0.3% for the smallest gain among the 11 sectors that make up the S&P 500.

SHANGHAI-Asian shares moved higher on Monday as investors welcomed a trade agreement between Beijing and Washington over the weekend, but enthusiasm was capped by lingering skepticism about the deal and ongoing relations between China and the United States.

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China expert Scott Kennedy said that the costs of the trade dispute "have been substantial and far reaching, [and] the benefits narrow and ephemeral".

"Our two sides still need to go through necessary procedures including legal reviewing and translation proofreading", Geng Shuang, the foreign ministry spokesman, said during a Monday press briefing when asked. Financial stocks in the S&P 500 overall gained 0.8%.

Oil prices rose, supported by the announcement of an initial U.S. Brent crude, the global standard, added 11 cents to $65.33 per barrel, and natural gas jumped 6 cents, or 2.6%, to $2.36 per 1,000 cubic feet.

Currency markets were mostly on hold.

YIELD EFFECT: Treasury yields rallied. The Japanese yen weakened 0.30% versus the greenback at 109.66 per dollar.

While China's trade delegation has expressed optimism about the deal, some government officials are cautious.

Meanwhile, the International Energy Agency last week cut its forecast for US oil supply growth to 1.1 million barrels a day for 2020, compared with 1.6 million this year.