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Asian stocks gain after US-China announce truce on tariffs

BEIJING (AP) — Asian stock markets have risen after Washington and Beijing announced a truce on tariff hikes in a trade war. Benchmarks in Shanghai, Hong Kong and Seoul advanced. Japanese markets were closed for a holiday.

President Donald Trump agreed Friday to put off planned tariff hikes this week on Chinese goods in a fight over Beijing's trade surplus and technology plans. In exchange, he said China would buy American farm goods. But the two sides reported no progress on basic disputes that sparked the 15-month-old fight that threatens global economic growth.

Friday's truce "has simply temporarily halted the escalation in China-U.S. trade tensions," said Philip Wee and Eugene Leow of DBS Group in a report. "Longer-term concerns remain that the trade war may widen from tariffs towards impeding investment flows," they said. The truce "could also see the Trump administration turning its tariff war towards the Eurozone."

The Shanghai Composite Index rose 1.4% to 3,014.73 and Hong Kong's Hang Seng advanced 1% to 26,578.41. Seoul's Kospi added 1.4% to 2,073.93. Sydney's S&P-ASX 200 gained 0.7% to 6,654.10. Benchmarks in Taiwan, New Zealand and Southeast Asia also advanced.

Also Monday, China reported exports to the United States fell 17.8% from a year earlier to $36.5 billion. Imports of American goods sank 20.6% to $10.6 billion. China's global exports fell 1.4% to $218.1 billion. Imports fell 5.8% to $178.5 billion.

On Wall Street, the benchmark Standard & Poor's 500 Index ended Friday with its first weekly gain in four weeks. The S&P 500 added 1.1%, to 2,970.27. Earlier it had been up 1.9%. The Dow Jones Industrial Average rose 1.2% to 26,816.59 and the Nasdaq gained 1.3% to 8,057.04.

ENERGY: Benchmark U.S. crude lost 29 cents to $54.41 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.15 on Friday to close at $54.70. Brent crude, used to price international oils, declined 32 cents to $60.19 per barrel in London. It advanced $1.41 the previous session to $60.51.

CURRENCY: The dollar declined to 108.34 yen from Friday's 108.38 yen. The euro was little-changed at $1.1035.

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