But shares in TSMC, the world's largest contract chipmaker have slipped, after US President Donald Trump said he would announce a tariff rate on imported semiconductors over the next week. He did add however, that there would be flexibility on some companies in the sector.

Beijing’s retaliation came after the White House ratcheted up its tariff on Chinese goods to 125 percent, on top of an existing 20 percent tax.

Trump announced a 90-day pause on a host of global tariffs he had planned, but increased levies on Chinese imports to 145%. "We urge the US to take a big step to correct its mistakes, completely cancel the wrong practice of 'reciprocal tariffs' and return to the right path of mutual respect,

China said it is now retaliating, adding 125% percent tariffs to U.S. goods, with the surcharge going into effect overnight.