The Chinese markets had a surprisingly good day Friday, given that the U.S. just massively jacked up tariffs against Chinese imports, and the trade negotiations between the two countries appear likely to fail.
The Hang Seng Index, having seemed set to plummet around lunchtime, ended up 0.84% up on the day. The Shanghai Composite Index did even better, soaring 3.1% by close. And the positivity may be spreading: the Stoxx Europe 600 Index is up 0.76% at the time of writing.
So, bearing in mind that Chinese companies will be hit hard by the tariff escalation, what gives? There are three possible factors at play.
