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Asian Equities Mixed; Chinese Stocks Surge 3% as Xi Vows “Unwavering” Support

Asian equities were mixed in morning trade on Monday - Asian equities were mixed in morning trade on Monday, while China’s Shanghai Composite and the SZSE Component both jumped more than 3% after Chinese President Xi Jinping vowed “unwavering” support for the country’s private sector.

Citing Xi’s letter to private entrepreneurs, state-owned Xinhua News Agency reported on Sunday that the President promised to support the development of private enterprises, as it is the Party Central Committee’s consistent policy. Xi also noted that “any words and practices that negate and weaken the private economy are wrong.”

His comment came as China’s stock markets face multiple headwinds, including the escalating tensions with the U.S. and a slowing economy. Official data showed last week that the country’s third quarter GDP grew at the slowest pace since early 2009.

Separately, state media Global Times said in an editorial on Monday that U.S. Secretary of State Mike Pompeo’s warnings about the risks of investing in China were “ignorant and malicious.”

Pompeo told reporters during his trip in Latin America last week that "when China comes calling it's not always to the good of your citizens".

"When they show up with deals that seem to be too good to be true it's often the case that they, in fact, are," he said on Thursday in Mexico City, according to comments posted on the U.S. State Department's website.

Elsewhere in Asia, Hong Kong’s Hang Seng Index gained 1.2%, while Japan’s Nikkei 225 and South Korea’s KOSPI both slipped 0.3% after U.S. equities edged lower Friday.

Down under, Australia’s ASX 200 also dipped 0.5%.

Meanwhile, Saudi Arabia remained in focus as Foreign Minister Adel al-Jubeir on Sunday called the killing of journalist Jamal Khashoggi a "huge and grave mistake," but added that Prince Mohammed was not aware of the incident and was not responsible for the killing.

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