China Stocks Jump After Xi-Trump Trade Truce

China stocks rallied Monday after Chinese President Xi Jinping and his U.S. counterpart President Donald Trump agreed over the weekend to restart stalled trade talks.

The benchmark Shanghai Composite Index closed up 2.22%, while the more tech-heavy Shenzhen Component Index closed up 3.84%. Hong Kong’s stock market was closed on Monday for a public holiday.

Tech stocks enjoyed big gains, with Shenzhen-listed telecommunications-gear maker ZTE Corp. closing up 4.2% and electronics manufacturing giant TCL Corp. closing up 8.1%. ZTE’s business almost ground to a halt last year after clashes with the U.S. government.

Shanghai-listed Foxconn Industrial Internet, whose Hong Kong-listed sister company FIH Mobile Ltd. makes Apple’s iPhones, rose by the daily 10% limit. Nikkei Asian Review reported in June that Apple was considering moving 15% to 30% of its production outside of China due to the country’s tensions with the U.S.

Trump agreed at the meeting not to slap threatened tariffs of up to 25% on around another $300 billion worth of Chinese imports, though the punitive tariffs that the two countries have already levied on each other’s imports remain in place.

During a news conference after the meeting with Xi on Saturday, Trump also said he would allow U.S. companies to sell equipment and components that do not pose national security issues to Chinese telecommunications giant Huawei Technologies Co. Ltd., which had previously been placed on an “Entity List” that effectively banned it from buying U.S. components.

Shares in Dawning Information Industry Co. Ltd., the listed unit of supercomputing firm Sugon, which was placed on the same Entity List in late June, also rose Monday by the 10% daily limit.

The yuan also closed 0.3% stronger against the dollar, ending the day at 6.84 yuan per dollar, the strongest level since May 10. The currency has been under pressure since April from the U.S.-China trade tensions and signs of slowing growth in the world’s second-largest economy.

Contact reporter Ke Baili (bailike@caixin.com)