Tariff Talks and Market Tides: Navigating U.S.-China Trade Dynamics

China and Hong Kong stocks faced mixed reactions after a U.S.-China trade agreement delayed tariffs. Market optimism was tempered by skepticism about future negotiations. While some sectors gained modestly, overall investor sentiment remained cautious. Despite recent gains, experts suggest remaining wary of long-term risks.

China stocks experienced little movement on Tuesday, while Hong Kong shares dipped as investor enthusiasm over a U.S.-China trade deal tempered. The deal, struck after discussions in Geneva, initially spurred a global market rally, but longer-term concerns over negotiations kept investor sentiment cautious.

Despite the initially favorable market response, China's blue-chip CSI 300 Index saw marginal growth, with less than a 0.1% gain, and the Shanghai Composite Index rose by 0.2% in early trading. Meanwhile, Hong Kong's Hang Seng Index retreated by 1%, pulling back from a recent peak.

U.S. Treasury Secretary Scott Bessent announced a 90-day halt on reciprocal tariffs, with U.S. and Chinese officials agreeing to lower tariff rates. However, experts warn that the full recovery of Chinese stocks from last month's sell-off may not be sustainable amid ongoing trade volatility.

(With inputs from agencies.)