When US presidents opine on China, it is rarely good news for investors in Chinese equities. At least in recent years, announcements have tended to mark punitive measures such as blacklists, export restrictions and tariffs. 

That trend was bucked on Friday. Chinese stocks rose after Donald Trump remarked on a “friendly” conversation with Xi Jinping and hinted at a potentially softer approach toward tariffs. The diplomatic cordiality between geopolitical rivals may not guarantee lasting progress on trade talks. Yet for local stocks, it arrives at a perfect time.

Blue-chips such as Tencent, Alibaba and JD.com gained 3 per cent on Friday, as did Hong Kong’s benchmark index which is particularly sensitive to geopolitical tensions. The Hang Seng rose about 2 per cent, bringing gains to 6 per cent since last week. That suggests relief that Trump says he would rather not have to use tariffs against on Chinese goods — a big question hanging over valuations for the past year.