NetEase (NTES) saw its stock soar 5.09% on Monday, riding the wave of optimism following significant progress in US-China trade talks. The surge comes as part of a broader rally among Chinese stocks and ETFs, spurred by the announcement of major tariff reductions between the world's two largest economies.
Over the weekend, the United States and China agreed to substantial tariff cuts for a 90-day period. The US will reduce its combined 145% levies on most Chinese imports to 30%, while China will lower its 125% duties on US goods to 10%. This move is seen as a critical step in de-escalating trade tensions that have plagued bilateral relations and impacted global markets.
While NetEase wasn't specifically mentioned in the reports, as a leading Chinese internet technology company, it stands to benefit from the improved trade outlook and renewed investor confidence in Chinese equities. The positive sentiment is reflected in the performance of other Chinese ADRs and ETFs, with some seeing gains of up to 9% in pre-market trading.
As negotiations continue and both countries work towards resolving their differences, the technology sector, in particular, may see further gains. Investors will be closely watching for any additional developments in US-China relations and their potential impact on companies like NetEase in the coming weeks.
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