Stocks rise along with optimism over US-China trade talks

Associated Press

WASHINGTON

Three days of U.S.-Chinese talks aimed at ending a costly tariff battle wrapped up Wednesday in an optimistic atmosphere, with President Donald Trump saying they were “going very well!”

A statement from the Office of the U.S. Trade Representative did not characterize the tone of the talks or say what would happen next, noting only that the U.S. delegation would await “guidance on the next steps” after reporting back to Washington.

The U.S. statement said the negotiations dealt with the need for any deal with China to be “subject to ongoing verification and effective enforcement” – a comment that reflects U.S. frustration that the Chinese have failed to live up to past commitments.

The U.S. also said the negotiations “focused on China’s pledge to purchase a substantial amount of agricultural, energy, manufactured goods and other products and services from the United States.” Trump has complained repeatedly about the U.S. trade deficit with China, which last year likely exceeded the 2017 gap of $336 billion.

Stocks surged Wednesday on optimism that the midlevel talks in Beijing will be followed up with discussions between higher-ranking U.S. and Chinese officials. Investors were encouraged that talks planned for two days were extended to three. Hong Kong’s main market index closed up 2.1 percent and Tokyo rose 1.1 percent.