Market upbeat after Sino-US leaders meet in Osaka

Optimism is on the rise in the financial markets after the Chinese and United States leaders agreed to resume trade talks during the weekend, when policy observers called that a relief from negative sentiment among investors and an opportunity to reheat the global economy.

The message that the US decided not to add new tariffs on Chinese exports cheered up investors in the Chinese financial market on Monday. The CSI 300 index, a tracker of major Shanghai- and Shenzhen-listed stocks, rose by 2.88 percent at Monday's close.

The onshore renminbi spot exchange rate gained more than 0.56 percent to 6.8286 per dollar during the trading, the strongest since May 10. The offshore renminbi became the Asia's best performer on Monday morning.

"The good result" is actually very important to stabilize the financial market, as well as to stabilize economic growth, according to Zhu Min, head of Tsinghua University's National Institute of Financial Research and the former deputy managing director of the International Monetary Fund.

At the ongoing Summer Davos Forum, an annual event organized by the World Economic Forum in China, Zhu shared his projection that the result of the Sino-US meeting may slow down the US central bank's step of cutting interest rates, although one cut is still possible this year.

Earlier, the global market speculated that the US Federal Reserve is likely to lower its policy rates by the end of July, as the escalated trade tensions have stressed the world's bumpy growth.