China Stocks Jump after Tariff Hike

Stocks in China rallied on Friday, after the U.S. carried out its threat and raised tariffs on Chinese goods at midnight.

Elsewhere, the picture was rather mixed in Asia.

In Japan, the Nikkei 225 dropped 57.21 points, or 0.3%, to 21,344.92.

The Japanese yen, widely viewed as a safe-haven currency, traded at 109.79 against the U.S. dollar after touching an earlier low of 110.04.

In Hong Kong, the Hang Seng Index regained 239.17 points, or 0.8%, to 28,550.24.

The Australian dollar was at $0.6997 U.S., in a turbulent trading week that has seen the currency scale highs above $0.7020.

CHINA

In Shanghai, the CSI 300 index recouped 130.75 points, or 3.6%, to 3,730.45

The U.S. increased tariffs from 10% to 25% on $200 billion worth of Chinese goods at 12:01 a.m. ET Friday, even as the White House said negotiations will continue. In response, Beijing said it "deeply regrets" the tariff hike and would take countermeasures — though no specifics were provided.

Chinese Vice Premier Liu He is currently in Washington for trade negotiations with the U.S. negotiators. Liu, however, is meeting with Trump's trade team without the title of "special envoy" for Chinese President Xi Jinping, a role he held in previous talks, suggesting he may have diminished authority to make concessions that could be crucial to striking a deal.

The recent developments marked a turnaround in sentiment, with investors previously expecting a deal to be announced between the two economic powerhouses to end their protracted trade war.

In other markets

In Korea, the Kospi index restored 6.03 points, or 0.3%, to 2,108.04

In Singapore, the Straits Times Index picked up 3.8 points, or 0.1%, to 3,273.50

In Taiwan, the Taiex Index docked 20.68 points to 0.2%, to 10,712.99

In New Zealand, the NZX 50 dipped 4.98 points, or 0.1% to 10,099.37

In Australia, the ASK 200 gained 15.52 points, or 0.3%, to 6,310.85