Trump's Trade Tactic Boosts Chinese Market Confidence

Chinese stocks rose, and the yuan strengthened as President Trump's initial policies signaled negotiation over imposing hefty tariffs, offering relief to global markets. Though Trump hinted at potential tariffs on imports from Canada and Mexico, Chinese markets viewed this as a marginally positive development.

In an unexpected yet cautiously optimistic turn, Chinese stocks opened on an upward trend and the yuan appreciated against the dollar on Tuesday. The movement came amid signals from U.S. President Donald Trump that his initial trade strategy would focus on negotiation rather than immediate tariff implementation.

Trump, who returned to the White House with an ambitious agenda encompassing trade reform and deregulation, had not targeted China directly in his inaugural speech. He instead directed federal agencies to examine trade deficits and investigate issues of currency manipulation, offering a temporary relief rally for global markets.

The blue-chip CSI300 Index initially rose by 0.8%, but later stabilized, while the yuan increased by about 0.3% against the dollar. Though market relief may not persist, analysts perceive Trump's softer stance as generally positive, reflecting a pivot from his previous hardline rhetoric.

(With inputs from agencies.)