Stocks soar after China-US's temporary trade truce

China's stock markets saw big gains on Monday, following a temporary tariff truce agreement between US and China and the country's improving factory activities data in November.
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A Chinese investor smiles as he looks at indices and prices of shares at a stock brokerage house in Hangzhou, east China's Zhejiang province, on Monday.

China's stock markets saw big gains on Monday after a temporary agreement between the US and China to postpone more tariffs, as well as improved factory activity in November.

The benchmark Shanghai Composite Index jumped by 2.57 percent or 66.61 points to finish the day at 2,654.80. 

The smaller Shenzhen Component Index advanced by 3.34 percent to end at 7,938.47 points, and the Nasdaq-style ChiNext enterprise board closed the day up by 3.26 percent to 1372.79 percent.

During talks at the G-20 meeting held at Buenos Aires, Chinese President Xi Jinping and US President Donald Trump agreed to put off additional tariffs on each other's goods for the next 90 days.

And yesterday, a private survey showed that China’s factory activity increased in November. The newly-released  Caixin Manufacturing Purchasing Managers' Index rose to 50.2 last month from 50.1 in October.

During afternoon trading, auto parts makers  had broadly-based  rallies. Shares of Zhejiang Jinfei Kaida Wheel Co Ltd, an aluminium alloy auto wheel manufacturer, surged by the daily maximum limit of 10 percent to close at 7.11 yuan per share.

Haitong Securities said that favorable external environment is helping the A-share market to recover but it also warns that it will take time for the market to see a major rebound.

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