China H-shares get boost from Trump U-turn on ZTE
Philippine, Vietnam stocks rally; EM currencies mostly stronger
Chinese H-shares were among the world’s best performers on Monday, with the Hang Seng China Enterprises Index up 1.61% after Washington’s turnaround on ZTE.
Suggesting in a tweet that his administration was willing to offer the Chinese telecoms giant leniency, the US president said “President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast.” Lifting a ban on US component sales to ZTE is said to be one of the big asks that top Xi advisor Liu He was bringing to Washington for a new round of trade talks this week.
Taiwan rose by 0.86%, Philippines by 2.39%, and Vietnam by 2.12%. KOSPI and the Indian exchanges were almost unchanged. Manila got a boost from the American ratings agency S&P, which lifted Security Bank’s credit rating to investment grade. EM currencies were mostly stronger.