China, Hong Kong stocks edge higher ahead of tariff deadline
Market participants broadly expect another extension from the August 12 deadline for the trade truce after earlier talks in Stockholm. Meanwhile, markets largely looked past underwhelming Chinese price data at the weekend.
The trade negotiations will likely result in an extension of reciprocal tariffs, and until U.S. President Donald Trump's potential visit to China, the impact of U.S.-China relations on A-shares could remain minimal, analysts at Caitong Securities said in a note.
At the midday break on Monday, the Shanghai Composite index rose 0.5% to 3,653.50 points to build on the 2.1% gain last week. The blue-chip CSI300 index was up 0.6%.
Leading gains onshore on Monday, the liquor sector jumped 2.1%, and AI-related stocks added 1.7%.
Shares of lithium maker Tianqi and Ganfeng surged to near the 10% daily trading limits after battery giant Contemporary Amperex Technology (CATL) said it had suspended production at a major lithium mine.
In Hong Kong, the benchmark Hang Seng Index was up 0.2% at 24,906.90.
The Tech index added 0.1%, while the Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index was steady.
Investors are also awaiting earnings reports from market heavyweights later this week, including Tencent Meituan, JD.com and Alibaba.
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