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"From an economic perspective, a trade war would be a 'lose-lose scenario' and negotiation is the preferred approach to reach a 'win-win' outcome", said Zhu Haibin, chief China economist and head of China equity strategy at JPMorgan. "Investors believe there is still room for negotiation between the two sides."

"Furthermore, the harmonious atmosphere can greatly help ease students' anxiety about the looming exam," she added.

"For example, if Japan can expand its share in the Chinese market, it will significantly solve its problem of insufficient domestic consumption."

"Following sharp declines, economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year," said the central bank in a statement.

"For example, besides snapping a few souvenir photos along the Seine River (in Paris), Chinese tourists may also fancy watching Les Miserables at a theater."