TOKYO (Reuters) - Stocks rose on Monday after U.S. Treasury Secretary Steven Mnuchin declared the U.S.-China trade war “on hold” following their agreement to suspend the tariff threats that roiled global markets this year.
U.S. S&P mini futures ESc1 rose 0.60 percent in Asian trade on Monday. European stocks are expected to follow suit, with spread-betters seeing a higher opening of 0.7 percent in Britain's FTSE .FTSE and 0.4 percent in Germany's DAX .GDAXI and France's CAC .FCHI.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 0.45 percent, led by strong gains in greater China. Hong Kong's Hang Seng .HSI was up 1.3 percent, Taiwanese shares .TWII 1.3 percent.
The Shanghai Shenzen CSI 300 .CSI300 gained 0.7 percent, hitting five-week highs.
Japan's Nikkei .N225 gained 0.4 percent.
Mnuchin and U.S. President Donald Trump’s top economic adviser, Larry Kudlow, said the agreement reached by Chinese and American negotiators on Saturday set up a framework for addressing trade imbalances in the future.
“The weekend talks appear to have made progress. While they still need to work out details of a wider trade deal, it is positive for markets that they struck a truce,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.
As safe-haven demand for debt fell, U.S. bond prices were under pressure, keeping their yields not far from last week’s peaks.
The 10-year Treasuries yield stood at 3.076 percent US10YT=RR, near a seven-year high of 3.128 percent hit on Friday.
“Recent data suggests the U.S. economy is very strong, hardly slowing down