China stocks opened lower on Tuesday after a major sell-off in the U.S. sparked by escalating tensions between the world’s two largest economies. But they quickly recouped those loses as local investors shrugged off the latest developments.
The Shanghai Composite Index opened down 1.06%, while the Shenzhen index opened down a similar 1.15%, following the Monday sell-off that saw the major U.S. indexes all drop by 2.4% or more. China said late Monday it will increase tariffs on about 5,000 American products to as much as 25% starting June 1, after the U.S. took similar measures late last week.
Despite opening down, the two main indexes quickly bounced back and moved into positive territory. About an hour into the trading day the Shanghai Composite was up about 0.14%, while Shenzhen was up about 0.4%.Related: Yuan Falls to 2019 Low on Setback in Trade Talks