Investing.com - Asian markets in morning trade on Monday after the U.S. and China agreed on a “phase one” trade deal over the weekend, although some analysts voiced skepticism about the accord.
China’s Shanghai Composite and the Shenzhen Component rose 1.7% and 1.3% respectively by 10:30 PM ET (02:30 GMT).
Washington will not be raising tariffs on Chinese goods as originally planned this week. In exchange, Beijing will make as much as $50 billion of agricultural purchases and also take steps on intellectual property, financial services and the yuan.
“My deal with China is that they will IMMEDIATELY start buying very large quantities of our Agricultural Product, not wait until the deal is signed over the next 3 or 4 weeks. THEY HAVE ALREADY STARTED!” said U.S. President Donald Trump.
The two sides agreed to the outlines of a deal that could be signed as early as next month.
However, some economist reacted with skepticism and doubt about the agreed “trade deal” as it is an “uncertain” arrangement at best.
“Let’s not get carried away,” said Raoul Leering, head of international trade research at ING Bank NV, in a Bloomberg report. “There is a very tough journey ahead for the U.S. and Chinese negotiators to cut a deal that really has substance.”
In a note written on Friday, Morgan Stanley (NYSE:MS) strategists Michael Zezas and Meredith Pickett said they do not expect a meaningful rebound in corporate behaviour that would drive global growth higher, as “there is not yet a viable path to existing tariffs declining, and tariff escalation remains a meaningful risk.”
Trump also commented on the situation in Hong Kong, saying that he thinks the current situation of civil unrest “is going to take care of itself.”
“We discussed Hong Kong and I think great progress has been made by China in Hong Kong, and I’ve been watching and I actually told the vice premier it really has toned down a lot from the initial days of a number of months ago when I saw a lot of people, and I see far fewer now,” Trump told reporters Friday.
Hong Kong’s Hang Seng Index rose 1.2% in morning trade.
Japan’s Nikkei 225 also traded 1.2% higher, while South Korea’s KOSPI climbed 1.4%.
Down under, Australia’s ASX gained 0.7%.