Asian stocks ended mostly higher on Monday after the U.S. and China agreed to restart trade talks on the sidelines of the G-20 summit and decided to not impose additional tariffs on each other’s products.
The Unites States agreed to put off additional tariffs on Chinese goods indefinitely while removing some curbs on Huawei Technologies Co. buying high-tech equipment from the U.S.
In response, China agreed to make unspecified new purchases of U.S. farm products and return to the negotiating table.
Chinese shares rallied after China said it would soften or lift restrictions on foreign investment in new sectors from July 30.
The benchmark Shanghai Composite index jumped 66.02 points or 2.22 percent to 3,044.90 while Hong Kong’s Hang Seng index ended down 78.80 points or 0.28 percent at 28,542.62.
Investors shrugged off data showing that Chinese manufacturing activity contracted for the first time in four months in June on trade disputes.
The Caixin manufacturing PMI dropped to 49.4 from 50.2 in May as trade tensions caused renewed declines in total sales, export orders and production.
Japanese shares hit a two-month high as the safe-haven yen slid on improved risk sentiment and tech shares gained ground on an easing of restrictions on Huawei. The Nikkei average jumped 454.05 points or 2.13 percent to 21,729.97 while the broader Topix index finished 2.17 percent higher at 1,584.85.
Chip-related shares surged, with Sumco, Tokyo Electron, Advantest and TDK Corp climbing 3-7 percent. Companies which have significant exposure to China also gained ground. Murata Manufacturing rallied 5 percent and Yaskawa Electric advanced 5.3 percent.
On the other hand, resin products maker JSR Corp lost 2 percent after Japan’s trade ministry said it would tighten restrictions on exports of some tech materials to South Korea, including polyimides used in flexible displays.
Australian markets closed modestly