Stocks in China, Hong Kong edge higher on hopes for Sino-US trade deal
SHANGHAI : Mainland China and Hong Kong stocks edged higher today, underpinned by market hopes for an extended trade truce between the US and China to reach a final deal.
US President Donald Trump said yesterday that the US was close to a trade deal with China and that he would meet his Chinese counterpart, Xi Jinping, before the end of the year if an agreement is struck.
'We're getting very close to a deal. We're getting along with China very well,' Trump said.
'Investors were keen to hear about the de-escalation of Sino-US trade tensions since early May,' said Steven Sun, head of research at HSBC Qianhai Securities.
Meanwhile, Winnie Chwang, portfolio manager at Matthews Asia, said investors would like to see more clarity from Sino-US trade negotiations.
'I do sense that, while there's been a bit more interest in revisiting the Chinese markets, there are also still investors that sit on the fence, primarily given the still uncertain nature of trade, and it's very difficult to make any sort of confident predictions,' Chwang said.
At the midday break, the Shanghai Composite Index was up 0.27% at 3,627.54 points, on course for a third straight session of gains. China's blue-chip CSI300 index was up 0.18%.
Defence and coal shares led gains in morning trades, rising 2.9% and 1.8%, respectively.
In Hong Kong, the benchmark Hang Seng Index was up 0.18% at 24,947.45 points, while the Hang Seng China Enterprises Index fell 0.03% to 8,948.78 points.
Separately, market attention will shift to a string of domestic economic data due later this week, including trade tomorrow and inflation on Saturday, that will give clues on the health of the economy.
A Reuters poll showed that China's export growth probably slowed in July, as manufacturers await clarity on whether Beijing can reach a deal with its top consumer market, the US, or if Trump will reinstate additional tariffs on goods from China.
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