China Stocks: A Resilient Surge Amid Trade Tensions
On Monday, China stocks reversed earlier losses to post gains, while Hong Kong shares retreated following a strong performance last week. Despite manufacturing contraction, indices like the CSI300 and Shanghai Composite rose, boosted by sectors like defense and tech. Analysts note limited impacts of the U.S.-China tariff truce.
China's stock market showed resilience on Monday as indices reversed earlier losses to close higher. Meanwhile, Hong Kong's shares retracted after last week's strong performance even though new manufacturing data reflected ongoing challenges.
The CSI300 and Shanghai Composite indices saw gains of 0.4% and 0.6% respectively, with sectors such as defense and tech leading the rally. On the other hand, Hong Kong's Hang Seng index declined by 0.9% following a more than 20% gain in the year's first half, showcasing a robust global market performance.
Despite a minimal rise in the purchasing managers' index, which remained under 50 indicating contraction, market analysts from Nomura and Goldman Sachs suggested that the impact of the trade truce with the U.S. should not be overstated. The outlook remains more optimistic than anticipated, as investors adjust to the trade environment and temper expectations for easing measures from Beijing.
(With inputs from agencies.)
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