Asian markets rally as Xi Jinping calms fears over a China-US trade war

China's President Xi Jinping has soothed investor fears of a trade war with the US as he warned against a "Cold War mentality", causing Asian shares to bounce.

Trade war tensions have been brewing between the world's two biggest economies over recent weeks, with the US threatening tariffs on $150bn (£106bn) of Chinese imports, including automobiles.

However, in a speech at the Boao Forum for Asia today, Xi said the country would look to widen market access for foreign investors, raising the foreign ownership limit in the automobile sector "as soon as possible".

“This year, we will considerably reduce auto import tariffs, and at the same time reduce import tariffs on some other products,” Xi said.

Although most of Xi's measures were previously announced, Asian markets and US futures rallied.

"The prospect of a more open Chinese economy has fuelled gains overnight in Asia and is setting up Europe for a very strong open on Tuesday," said Jasper Lawler, head of research and London Capital Group.

"Chinese President Xi Jinping unveiled a new set of economic reforms, including Trump-friendly plans to reduce tariffs in a speech at the Boao Froum. Xis apparent desire to balance out his countrys international payments is clearly great news for countries and companies selling goods to China."

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