China's Market Rally: Trade Data Brightens Outlook Amid Tariff Tensions

In an encouraging display, China and Hong Kong stocks climbed on Thursday, underpinned by robust Chinese trade data that invigorated market rally despite looming threats of renewed U.S. tariffs.

China's July exports exceeded expectations, posting a 7.2% year-on-year increase as manufacturers capitalized on a tariff truce with the U.S. Markets largely disregarded U.S. President Trump's comments about potential further tariffs on Chinese goods.

As the August 12 deadline for a possible trade agreement between Beijing and Washington approaches, investors remain optimistic. The Shanghai Composite and blue-chip CSI300 saw modest rises, with notable gains in the semiconductor sector and local developers in Hong Kong.

(With inputs from agencies.)