Stock Markets Soar Amid Eased US-China Tensions

China and Hong Kong's stocks showed positive momentum with notable gains, as the White House softened its approach towards China. Although concrete progress on trade remains elusive, markets react favorably to de-escalation steps. Technology and consumer staples lead the upward trend in shares.

In a remarkable turn, China and Hong Kong stocks surged on Friday, marking the second consecutive week of gains. The shift comes as the White House moderated its criticism of China, even without clear advances in trade negotiations.

By midday, China's Shanghai Composite index had risen 0.2% to 3,302.19, while the CSI300 index went up 0.4%. Hong Kong's Hang Seng Index saw a significant jump of 1.4%, leading to an impressive 3.8% increase for the week, the best in nearly two months. All three indices are enjoying their highest levels since April 3, following President Trump's announcement of 'reciprocal tariffs' that had initially upset global markets. Despite a pending trade resolution, optimism regarding eased tensions has settled investor concerns.

Further contributing to the positive market sentiment, tech shares boosted both onshore and offshore markets. The CSI Artificial Intelligence Index grew 1.4%, bolstered by the return of chip sector stocks, even catapulting the Hang Seng Tech Index in Hong Kong by 1.9%. Eli Lee, Bank of Singapore's chief investment strategist, emphasized a strategic focus on technology and consumer staples, particularly those resilient against tariff volatility.

(With inputs from agencies.)