(Bloomberg) -- Stocks in Asia climbed along with U.S. equity futures and the yuan after the American and Chinese presidents reached a truce in the trade war and agreed to resume talks. Treasuries, gold and the yen all declined.
Futures on the S&P 500 climbed as much as 1.1% before the strength of the risk-on trade eased as Monday trading continued. Japanese shares also jumped, though South Korea's benchmark saw limited gains. China's offshore yuan advanced and FTSE China A50 futures surged more than 2%. The deal between Presidents Xi Jinping and Donald Trump validated investor hopes after mixed signals heading into Saturday's meeting. Oil rose as Russia struck a deal with Saudi Arabia to extend the OPEC+ agreement at current production levels for the rest of this year and potentially into early 2020.
Though there's a lack of detail over the next steps for U.S.-China talks, many were surprised by Trump's decision to allow Huawei Technologies Co. to buy some products from U.S. suppliers -- a move that may become clearer when the Commerce Department meets this week. Existing tariffs will be maintained, and Trump said after the G-20 meeting that the course of the trade negotiations will determine if more or less duties are needed.
Fresh optimism on the trade front may help cushion disappointing economic data. China's purchasing manager index showed manufacturing continued to deteriorate in June. Monday brings the U.S. version of that gauge.
"After the markets were stuck in trade war limbo for the better part of two months, investors will breathe a massive, but exhausted, sigh of relief that both the U.S. and China opted to push the reset button and restart trade negotiations," said Stephen Innes, managing partner at Vanguard Markets Ltd.
Tech shares are in focus. Samsung Electronics Co. -- the world's biggest chipmaker -- opened flat, though SK Hynix Inc., another supplier to both Huawei and U.S. companies, rose more than 1%. Hong Kong markets are closed Monday for a holiday.
"While most expected that both sides will calm down to agree to further discussion," lifting the ban on Huawei was a surprise, said Hao Hong, a strategist at Bocom International in Hong Kong. "Lifting the ban for now shows progress in the negotiation and a sincerity to discuss further."
Read more on the developments over the weekend and the impact on markets:
Trump Says U.S. 'Winning' Trade War After Reviving China TalksChina Traders Gear Up for Relief Rally, Though Caution PrevailsFed Cut Bets Won't Vanish Just Because Trump and Xi Played Nice
Here are some key events coming up:
These are the main moves in markets:
--With assistance from Lilian Karunungan, Abhishek Vishnoi and Cormac Mullen.
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