Stocks Rise as US-China Trade Talks Loom
China and Hong Kong stocks saw gains on Monday, driven by rare-earth and tech sectors, ahead of US-China trade talks in London. The Hang Seng Index reclaimed the 24,000 level. Top officials from both nations aim to resolve trade tensions. Markets hope for progress from these discussions.
In a cautious market environment, China and Hong Kong stocks rose on Monday, with rare-earth and technology sectors leading the gains. This market movement comes as investors anticipate high-level trade negotiations between the United States and China in London.
At midday, China's blue-chip CSI300 Index and the Shanghai Composite Index both showed modest increases of 0.2%. Meanwhile, the Hang Seng Index in Hong Kong surged over 1%, crossing the critical 24,000 mark for the first time since March. The yuan, however, remained volatile and was last traded at 7.1872 per dollar.
Trade tensions are at the forefront as U.S. Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng prepare for talks. These discussions follow a tense exchange between Xi Jinping and Donald Trump, reigniting disputes over breaches of prior agreements. The meeting is significant for sectors like rare earths, which saw a 1.6% rise amidst hopes for favorable outcomes.
(With inputs from agencies.)
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