China Stocks Soar Amid Better Industrial Output

China Stocks Soar Amid Better Industrial Output

On Monday afternoon, Mainland Chinese stocks jumped at the close, as data showed that China’s retail sales and industrial output gained more than expected in November.

The Shanghai Composite added 0.56% to 2,984.39, as Shenzhen composite jumped from 1.56% to 1,686.4. Also, the Shenzhen component jumped from 1.54% to 10,158.24. Shenzhen’s Nasdaq-style start-up board ChiNext climbed about 2% to 2,090.14. However, Hong Kong’s Hang Seng index was down 0.34% during its last hour of trading.

According to China’s National Bureau of Statistics, China’s industrial production rose 6.2% year-on-year in the previous month. Retail sales also added 8.0% year-on-year as well, also above expected 7.6% growth.

Meanwhile, Asian markets had a mixed reaction to the news that China and the United States announced they were set to sign off on a ‘phase one deal.’

Phase One Trade Deal Will Double U.S. exports to China?

Chinese YuanAustralia’s S&P/ASX 200 led stocks in the region, soaring 1.63% to 6,849.70.

On the other hand, after a strong rally on Friday, Japan’s Nikkei 225 ended its trading day down at 0.29% to 23,952.35, and the Topix index lost 0.18% to 1,736.87.

In South Korea, the Kospi also declined 0.10% to 2,168.15

Overall, MSCI’s broadest index outside Japan was up 0.21%.

Robert Lighthizer, the U.S. Trade Representative, said that phase one trade deal would nearly double U.S. exports to China over the next two years.

Both countries’ officials announced that the parties had reached a phase one trade agreement after a contentious 18-month trade war. China agreed to billions of dollars in agricultural purchases from the United States. On the other hand, President Donald Trump promised not to pursue a new round of tariffs. The tariffs had been scheduled for Sunday. These two major economies plan to sign the partial accord in January.

U.S. stocks did not move much by Friday despite the trade developments. The Dow Jones Industrial Average closed just 3.33 points higher. The S&P 500 also ended the day just above the flatline at 3,168.80, while the Nasdaq Composite added 0.2% to 8,734.88.