The United States and China have agreed to drastically reduce their tit-for-tat tariffs for a 90-day period, they said in a joint statement after two days to trade talks in Geneva.

 

"We have reached an agreement on a 90-day pause," US Treasury Secretary Scott Bessent told reporters after the sides issued the statement, adding that "both side will move their tariffs down" 115 percentage points.

 

Hong Kong stocks jumped more than three percent after the announcement.

 

The Hang Seng Index surged 3.34 percent, or 762.94 points, to 23,630.68.

 

Oil prices rocketed more than three percent.

 

West Texas Intermediate jumped 3.6 percent to USD 63.24 and Brent climbed 3.4 percent to USD 66.11 on hopes a pullback in tensions will support the global economy and boost demand for the commodity.

 

The dollar rallied more than one percent against the yen and euro.

 

The dollar rose 1.5 percent to 147.62 yen, while also advancing 1.2 percent to  USD 1.1113 to the euro.