By George Glover

Chinese stocks surged on Monday after the U.S. and China brokered a deal to slash tariffs on each other's imports for the next 90 days.

American depositary receipts for the online retailer Alibaba Group jumped 7.1% ahead of the U.S. opening bell. Rival e-commerce company JD.com 5.9%, and ADRs for search-engine provider Baidu climbed 4.7%.

Shares in electric-vehicle makers were also rising. XPeng ADRs gained 8.7%, while NIO climbed 6.8% and Li Auto added 7.1%.

The stocks were racking up gains after officials from Washington and Beijing said they had agreed a deal to cut tariffs for 90 days as trade negotiations continue. In terms of reciprocal tariffs the U.S. will slash the rate it imposes on Chinese goods to 10% from 125%, and China will likewise reduce its retaliatory levy on U.S. goods to 10% from 125%.

Hong Kong's Hang Seng Index closed 3% higher, meaning it has now clawed back all its losses since President Donald Trump announced tariffs on the so called "Liberation Day" on April 2. The mainland CSI 300 gauge rose 1.2%, and the Shanghai Composite was up 0.8%.

Write to George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 12, 2025 05:50 ET (09:50 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.