** Shares of cosmetics giant Estee Lauder EL.N up ~5% at $66.96 premarket

** 'Big Short' investor Michael Burry's Scion Asset Management buys shares of EL, a regulatory filing showed on Thursday

** On Monday, Washington and Beijing announced a truce in their trade war following which U.S. is dropping extra tariffs imposed on Chinese imports this year to 30% from 145%, while China is cutting them to 10% from 125%

** EL, similar to other retailers, is expected to benefit from this deal as the company depends significantly on sales from markets such as China; 31.3% of the company's total sales in fiscal 2024 came from Asian markets

** Burry's firm ends the first quarter more bearish on Chinese companies including PDD Holdings PDD.O — owner of e-commerce platform Temu — and buys put options on them following Trump administration's recently discussed trade policies

** Put options give investors the right to sell shares at a set price and are used to profit from or protect against a stock's decline

** Up to last close, stock down 15.1% YTD

(Reporting by Anuja Bharat Mistry in Bengaluru)

((AnujaBharat.Mistry@thomsonreuters.com))