US-China Trade Talks Spark Optimism in Markets
Chinese and Hong Kong stocks saw an uptick as rare earth and technology sectors led gains. Investors are cautiously hopeful about upcoming U.S.-China trade negotiations in London, with economic tensions persisting. Any progress in talks could potentially lift market sentiment and provide temporary relief from ongoing trade disputes.
Chinese and Hong Kong stocks experienced a modest rise on Monday, fueled by advancements in the rare earth and technology sectors. Investors remained cautiously optimistic as high-level U.S.-China trade negotiations are set to commence in London, aiming to mitigate ongoing economic tensions between the world's two largest economies.
At the forefront of the discussions, U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer will engage with China's Vice Premier He Lifeng. These negotiations mark the first meeting under the renewed economic and trade consultation mechanism between the two countries, amid China's export slowdown and deflation concerns.
The rare earths sector drew significant attention, recording a 2.4% jump in domestic markets, marking its best performance in over a month. Concurrently, technology stocks boosted Hong Kong's markets, with the Hang Seng Tech Index escalating by 2.8%, entering a technical bull market after a 20% recovery since April.
(With inputs from agencies.)
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