China and Hong Kong Stocks Rebound Amid Mixed Economic Signals

On Monday, China and Hong Kong stock markets witnessed marginal gains led primarily by property and technology sectors. Investor sentiment, however, remained cautiously optimistic due to mixed macroeconomic indicators and persisting geopolitical tensions that influenced market dynamics.

The blue-chip CSI300 Index in China rose by 0.3%, while the Shanghai Composite Index gained 0.4%. Hong Kong's Hang Seng Index also experienced a 0.7% increase. Despite reaching a six-month low in factory output growth, China's retail sales increased, providing temporary economic relief within the context of an uneasy trade truce with the U.S.

Contributing to May's consumption boost were the golden week holiday and mid-May e-commerce discounts, marking preparation for the '618' shopping event, analysts at UBS noted. However, questions remain about the lasting effects of this momentum, especially as trade-in program benefits wane and tariff uncertainties persist.

(With inputs from agencies.)