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Jodi Xu Klein

US stocks jumped on Thursday after the US and China announced the two countries would renew trade talks in early October and the US reported strong job numbers.
The Dow Jones Industrial Average closed up 1.4 per cent after jumping more than 450 points, or 1.8 per cent, to a one-month high of 26,836 during morning trading. The Nasdaq composite was up 1.8 per cent, while the S&P 500 index rose 1.3 per cent.
The markets rallied on renewed optimism after China announced on Thursday that trade negotiations with the US would resume in Washington next month, following mid-level discussions in September.
The Office of the US Trade Representative also confirmed on Thursday that a deputy-level meeting would be held in mid-September to “lay the groundwork”.




Chinese Vice-Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin spoke in their first conversation since August 13.
Stocks with large business exposure to China fared strongly, with Apple rising 2 per cent, and Intel and Qualcomm both logging gains of about 2.4 per cent.
“The trade talk news was a major shot in the arm for the bulls as the Street is laser-focused on this situation,” said Dan Ives, an analyst at investment firm Wedbush Securities in New York.
Also on Thursday, the US announced payrolls surged by 195,000 last month, well above Wall Street estimates, despite growing fears about a looming recession, according to a report from ADP and Moody’s Analytics.
US President Donald Trump tweeted: “Really Good Job Numbers!”

The world’s two largest economies have been battling an escalating trade war since last year, with each side slapping the other with tariffs on billions of dollars’ worth of imports.
The prolonged conflict has weighed on growth for both countries and has started to hurt the global economy.
On Sunday, new tariffs on US$125 billion of Chinese imports, including shoes and smartwatches, took effect after Trump said he was disappointed in China’s tepid effort to buy US farm goods.
China-US trade talks to resume in early October amid dim growth outlook
China retaliated with duties on US$75 billion of American goods, affecting crude oil.
US markets have been seesawing on the uncertainty and were down in August as tensions increased.
On Thursday, China’s Ministry of Commerce pledged to make substantial progress to resolve the 13-month trade war with the US.

A pause in the trade hostilities would help both nations economically. The US growth rate is expected to dip below 2 per cent next year, according to economists. US manufacturing activity, which Trump had said would benefit from his trade war, contracted in August.
Meanwhile, China is battling its own growth slowdown as high debt levels and market structural challenges rattle its economy.
Earlier this year, Trump administration officials had said the sides were close to a deal, but any promise of a quick end to the trade war faded in May as negotiations hit an impasse.
China-US trade war: new tariffs take effect, talks still unconfirmed
Without a trade agreement, the US is on track to increase tariffs on US$250 billion of Chinese imports come October.
Another round of 15 per cent tariffs is scheduled for mid-December. That would bring the total amount of goods under punitive tariffs to US$550 billion, effectively the entirety of China’s imports to the US.


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US-China trade war

US stocks rally on resumed trade talk optimism with China, strong US job numbers

Traders work on the floor at the New York Stock Exchange on Thursday. Photo: Reuters

U.S. Trade Representative Robert Lighthizer, center, gestures as he chats with Chinese Vice Premier Liu He, right, with Treasury Secretary Steven Mnuchin, left, looking on after posing for a family photo at the Xijiao Conference Center in Shanghai on Wednesday, July 31, 2019. (AP Photo/Ng Han Guan, Pool)

President Donald Trump talks with reporters after receiving a briefing on Hurricane Dorian in the Oval Office of the White House, Wednesday, Sept. 4, 2019, in Washington. American farmers have not just endured retaliatory tariffs from China and other nations. They’ve had to watch as competitors used free trade agreements to make inroads into Japan, a historically protectionist market. (AP Photo/Evan Vucci)

China-US trade war talks to resume in early October as global growth outlook dims

US Trade Representative Robert Lighthizer (left) and Treasury Secretary Steven Mnuchin have shared their first phone call with Chinese Vice-Premier Liu He (right) since August 13. Photo: AFP

FILE PHOTO: Chinese and U.S. flags flutter near The Bund, before U.S. trade delegation meet their Chinese counterparts for talks in Shanghai, China July 30, 2019. REUTERS/Aly Song/File Photo

US tariff threats rattle US stock markets, with major indexes all enduring sell-offs

A screen shows the Dow Jones Industrial Average at the end of the day at the New York Stock Exchange on Tuesday, as markets continued to react to uncertainty surrounding trade negotiations between the United States and China. Photo: EPA-EFE

Chinese tariffs hit US food exporters, leaving other nations to make hay while the sun shines

US lobster exports to China fell by 80 per cent in 2018. Photo: AP

For the week ending August 15, US farmers exported just 6,900 metric tonnes of pork to China, compared to 19,484 metric tonnes over the same week a year earlier. Photo: AFP

China seeking moral high ground against Donald Trump with WTO complaint over latest US tariffs, analysts say

The United States imposed the first batch of new tariffs on US$300 billion of Chinese imports on Sunday. Photo: AFP

(FILES) This file photo taken on April 12, 2018, shows the World Trade Organization (WTO) headquarters in Geneva. - US President Donald Trump on July 26, 2019, threatened to withdraw recognition of the special "developing nation" status of China and other relatively rich countries in the World Trade Organization unless changes are made. The global trade body uses "an outdated dichotomy between developed and developing countries that has allowed some WTO members to gain unfair advantages," Trump said in a statement. (Photo by Fabrice COFFRINI / AFP)

US Treasury Secretary Steven Mnuchin (left), US trade representative Robert Lighthizer and Chinese Vice-Premier Liu He are the top trade negotiators from the United States and China but it has yet to be confirmed if they will meet again in September. Photo: Reuters

China-US trade war: latest tariffs take effect as sides seek to get talks back on track

The United States and China escalated their trade dispute on Sunday with the introduction of new tariffs on each other’s goods. Photo: AFP

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Dow Jones Industrial Average closed up 1.4 per cent after jumping to a one-month high in morning trading, while the Nasdaq composite and S&P 500 both closed up
US payrolls surged by 195,000 in August, well above Wall Street estimates



The Dow Jones Industrial Average closed up 1.4 per cent on US-China trade talks resuming in October and surging US payrolls.
