0748 GMT - The U.S.-China trade truce should buoy market confidence, but a broad upswing will need more domestic policy support, Morningstar's Lorraine Tan says. Asian markets had largely discarded the risk of U.S. tariffs on China rising to 157%, and lower duties won't dispel geopolitical risks. "The U.S. has made clear its preference for an America-first policy while China is prioritizing self-sufficiency in key industries," she says, viewing further decoupling as more likely than not. The truce backs Morningstar's view that China's economy is bottoming but doesn't change its long-term call for GDP growth to slow to 3%. It sees the broad Chinese market as fairly valued, with select opportunities. One pick is Alibaba for AI exposure; another is Yum China as a consumer recovery play. (jason.chau@wsj.com)

(END) Dow Jones Newswires

October 30, 2025 03:49 ET (07:49 GMT)

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