On February 6, stocks across Asia benefited from the positive news connected with U.S.-China trade relations. Today, the Chinese government stated that it would halve tariffs on hundreds of U.S. imports starting from February 14.
The purpose of this decision was to improve ties with the U.S. This adjustment would apply to about $75 billion worth of imports.
This news helped to boost the stock markets. Mainland Chinese stocks were the biggest gainers of the day. For example, Shenzhen composite rose 2.895% to end its trading day at approximately 1,727.24. Meanwhile, the Shenzhen component added 2.87% to close at 10,601.34.
Another major Chinese stock index, which is the Shanghai composite also strengthened its position. Its index gained 1.72% to close at about 2,866.51.
In Japan, stocks also have a positive day. The Nikkei 225 added 2.38% to 23,873.59. The Topix index gained 2.07% to 1,736.98.
South Korea, Kospi index rose 2.88% to close at 2,227.94.
Hong Kong’s Hang Seng index gained 2.35% as of its final hour of trading.
In Australia, S&P/ASX 200 ended its trading day 1.05% higher at 7,049.20.
Stocks and ongoing situation
Beijing’s decision comes at a time when market sentiment suffered as a result of the coronavirus outbreak. The stocks are struggling as the virus created additional pressure on the markets.
As of Wednesday night, the virus already killed more than 500 people in China, and thousands are infected, based on the information provided by China’s National Health Commission.
Chinese authorities had to extend the Lunar New Year holiday to tackle this problem. At the moment, millions of people are prohibited from leaving their cities as this way officials would like to limit the spread of coronavirus to other regions. However, this virus reached all areas of China. In the modern world, it is tough to stop this virus especially in the case of the world’s most populated country.