China Boosts Infrastucture, Stocks Leap

Shares in mainland China surged on Tuesday, as a signal of an infrastructure boost from Beijing outweighed comments from U.S. President Donald Trump on the ongoing trade war between the two economic powerhouses.

In Japan, the Nikkei 225 added 69.86 points, or 0.3%, to 21,204.28.

The Japanese yen traded at 108.55 against the U.S. dollar after seeing an earlier high of 108.34

In Hong Kong, the Hang Seng index zoomed 201.7 points, or 0.8%, to 27,789.34. Hong Kong-listed shares of China Construction Bank rose 1.4%.

South Korean markets rose as shares of LG Electronics soared 6%.

Australian markets popped as most sectors saw gains. The Australian dollar changed hands at $0.6958 U.S. after its decline from levels above $0.7000 in the previous session.


In Shanghai, the CSI 300 galloped 108.54 points, or 3%, to 3,719.28

The moves on the mainland came after state news agency Xinhua reported Monday that China would enable local governments to use special bonds to finance certain investment projects, citing a "notice on local government bonds."

Meanwhile, on the U.S.-China trade front, Trump told reporters on Monday that China would have to make a deal with the U.S. "because they’re going to have to."

The U.S. president also confirmed that more tariffs on Chinese goods will kick into place should Chinese President Xi Jinpingfail to attend the upcoming G-20 meeting. The president previously threatened to put levies on another $300 billion in Chinese goods if a trade agreement is not reached soon.

In other markets

In Korea, the Kospi index gained 12.32 points, or 0.6%, to 2,111.81

In Singapore, the Straits Times Index advanced 21.47 points, or 0.7%, to 3,209.58

In Taiwan, the Taiex Index moved higher 41.29 points, or 0.4%, to 10.607.76.

In New Zealand, the NZX 50 rebounded 111.54 points, or 1.1%, to 10,139.15

In Australia, the ASX 200 returned from a long weekend to gain 102.46 points, or 1.6%, to 6,546.29