TMTPost -- U.S. and Chinese stocks surged on Friday after China sent a clear signal of its consideration of possible trade negotiations with the Trump administration, raising hopes that formal talks could start on the horizon.
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The U.S. benchmark S&P 500 climbed 1.47%, logging its longest winning streak since November 2004. The index as of Friday has pared its losses since U.S. Donald Trump announced his sweeping worldwide reciprocal tariffs on April 2. The Dow Jones Industrial Average rose 1.39%. the Dow and S&P 500 capped the session with their ninth consecutive daily gain. The Nasdaq Composite popped 1.51% and settled at 17,977.73, its highest close since March 25.
The Nasdaq Golden Dragon China Index, which tracks 65 China-exposed U.S.-listed companies, finished 3.5% higher, outperforming the U.S. stock market on Friday. The index hit its highest close since February 2022 after China unveiled a comprehensive initiative to shore up consumption.
The American depositary receipts (ADRs) of Alibaba Group, the most valuable Chinese firm listed in U.S., gained 4.3%, and two domestic peers --Temu parent PDD Holdings Inc. and JD.com rose 4.7% and 4.9%, respectively. ADRs of GDS Holdings Ltd., Alibaba’s data center service supplier, jumped 9.1%. The video platform Bilibili gained 3.3%. Shares of Tesla’s Chinese rivals -- Xpeng, Zeekr, Nio and Li Auto gained between 2% and 5.8%.
Earlier Friday, a statement released by China's Ministry of Commerce (MOFCOM) reinforced investors’ impression that tariff tensions are easing.
The ministry said in the statement China is currently evaluating the situation, as the United States has recently reached out through relevant channels multiple times, expressing a desire to engage in talks with China over tariff issues.
In the meantime, China repeated its calling for Washington to remove its hefty tariffs, as part of efforts to show its “sincerity”.
China's position has been consistent -- if forced to fight, China will fight to the end, and for talks, the door is open, a commerce ministry spokesperson said in a statement.
The tariff and trade wars were unilaterally initiated by the United States, and if it wants to negotiate, it must demonstrate sincerity by making preparations and taking concrete actions, such as correcting its erroneous practices and lifting the unilateral tariffs, said the statement.
Noting that China has noticed the U.S. side constantly talking about adjustments to its tariff measures, the spokesperson said that "in any potential dialogue or talks, if the United States does not rectify its erroneous unilateral tariff measures, it would demonstrate a complete lack of sincerity and further undermine mutual trust."
Saying one thing while doing another, or even attempting to use talks as a cover for coercion and blackmail, will not work with China, the spokesperson stressed.
Besides the outlook of China-U.S. talks, the jobs report, which suggested the economy intact despite the tariff war, also fueled Friday’s market surge. The report showed U.S. nonfarm payrolls grew by 177,000 in April, stronger than the Wall Street estimated increase of 133,000. the unemployment came in at 4.2%, in line with analysts’ projection.
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