Chinese Stocks Surge Amid US-China Trade Truce Talks

Chinese shares hit a decade-high as President Trump met with President Xi in a bid to ease trade tensions. The positive market response reflects cautious optimism about a potential trade truce, although analysts remain skeptical about the long-term impact of the meeting.

Chinese shares soared to a decade high on Thursday as U.S. President Donald Trump and Chinese President Xi Jinping convened a pivotal meeting, igniting cautious optimism for a possible resolution to trade tensions that have long strained the world's two largest economies.

While investors welcomed early signals of easing tensions, apprehensions lingered that the agreement might ultimately yield limited results. As the Shanghai Composite Index rose to its peak since 2015, sectors like banking and insurance led the rally, driven by hopes for de-escalation in the trade dispute.

Amid jubilant market sentiment, analysts advised caution. A sustainable risk appetite among investors hinges on concrete outcomes from the discussions, rather than mere symbolic gestures. The meeting marks a critical juncture in the trade war narrative, as both economic giants seek a détente amid escalating tariffs and geopolitical challenges.

(With inputs from agencies.)