Mainland China, Hong Kong stocks edge higher on hopes for Sino-US trade deal
U.S. President Donald Trump said on Tuesday the U.S. 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-U.S. 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-U.S. 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 on Thursday and inflation on Saturday, that will give clues on the health of the economy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
14 minutes ago
- Express Tribune
US licenses Nvidia to export chips to China
The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California . PHOTO: REUTERS Listen to article The US Commerce Department has started issuing licences to Nvidia to export its H20 chips to China, a US official told Reuters on Friday, removing a significant hurdle to the AI bellwether's access to a key market. The US last month reversed an April ban on the sale of the H20 chip to China. The company had tailored the microprocessor especially to the Chinese market to comply with the Biden-era artificial intelligence (AI) chip export controls. The curbs will slice $8 billion off sales from its July quarter, the chipmaker has warned. Nvidia CEO Jensen Huang met with Trump on Wednesday, two sources familiar with the matter told Reuters. A spokesperson for Nvidia declined comment. The company said in July it was filing applications with the US government to resume sales to China of the H20 graphics processing unit and had been assured it would get the licences soon. It is unclear how many licences may have been issued, which companies Nvidia is allowed to ship the H20s to and the value of the shipments allowed. Nvidia disclosed in April that it expected a $5.5 billion charge related to the restrictions. In May, Nvidia said the actual first-quarter charge due to the H20 restrictions was $1 billion less than expected because it was able to reuse some materials. The Financial Times first reported Friday's developments. Nvidia said last month that its products have no "backdoors" that would allow remote access or control after China raised concerns over potential security risks in the H20 chip. Exports of Nvidia's other advanced AI chips, barring the H20, to China are still restricted. Successive US administrations have curbed exports of advanced chips to China, looking to stymie Beijing's AI and defence development.
Business Recorder
43 minutes ago
- Business Recorder
Japanese rubber futures gain on trade clarity, Thai weather woes
SINGAPORE: Japanese rubber futures climbed on Friday, notching a weekly gain, as weather concerns in Thailand and improved clarity on US-Japan trade policies buoyed market sentiment. The Osaka Exchange (OSE) rubber contract for January delivery was up 0.3 yen, or 0.09%, at 317.4 yen ($2.15) per kg. The contract climbed 0.73% this week. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 105 yuan, or 0.68%, to 15,550 yuan ($2,164.92) per metric ton. The most active September butadiene rubber contract on the SHFE gained 10 yuan, or 0.09%, to 11,515 yuan ($1,603.16) per metric ton. Top rubber producer Thailand's meteorological agency warned of severe conditions and rains from August 10-13. The US government said on Thursday that President Donald Trump would lower auto tariffs on Japan to 15% from 27.5%, in line with the agreement reached between the two countries. This comes as much of the agreement made last month was never put into a signed document, sparking concerns that some Japanese companies could be subjected to higher tariffs than expected. Meanwhile, major Japanese automaker Toyota has cut its operating profit forecast for the business year by 16%. However, it will keep making cars for US customers regardless of any impact from the tariffs, said Takanori Azuma, Toyota's head of finance. He added that inventories are low so many customers are waiting in both the US and Japan. Japanese automakers are among the hardest hit in the trade war as they resist raising prices, which has squeezed profit margins. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. The front-month rubber contract on Singapore Exchange's SICOM platform for September delivery last traded at 168.1 US cents per kg, up 0.2%.
Business Recorder
43 minutes ago
- Business Recorder
Copper higher on US rate cut hopes
LONDON: Copper prices crept higher for a third consecutive session on Friday, bolstered by hopes of US interest rate cuts after a central bank appointment and upbeat economic data in China. Benchmark three-month LME copper on the London Metal Exchange rose 0.2% to $9,700 a metric ton in official open-outcry trading, extending a rebound after touching its lowest in three weeks on July 31. US President Donald Trump on Thursday announced his pick to fill a vacant seat at the Federal Reserve, boosting hopes of interest rate cuts and weakening the dollar. A softer dollar makes commodities priced in the US currency less expensive for buyers using other currencies. 'The weaker dollar has been a key driver in August,' said Dan Smith at Commodity Market Analytics. 'You've got dollar weakness and China looking like it's in good shape. So the fundamental side feels like it's quite positive for the time being.' Data released on Thursday showed China's exports beat forecasts in July as manufacturers made the most of a fragile tariff truce between Beijing and Washington to ship goods. The most traded copper contract on the Shanghai Futures Exchange rose 0.1% to 78,490 yuan ($10,929) a ton. Smith said LME copper was looking potentially bullish in his algorithmic computer models, which seek to replicate fund activity that places buy and sell orders largely on momentum signals. 'I think there's a chance that next week it will flip back into giving a buy-signal on copper, with an upside potentially up towards $10,000,' he said. US Comex copper futures added 0.7% to $4.43 a lb by 1215 GMT, bringing the premium of Comex over LME copper to $62 a ton. On the supply side, investors were watching developments in top copper producer Chile, where Codelco has sought permission to reopen a part of its flagship mine after a fatal accident last week. Other metals were mixed. LME aluminium was flat at official activity to $2,610 a ton and zinc was little changed at $2,812.50 while tin added 0.2% to $33,800, nickel eased 0.3% to $15,075 and lead was down 0.6% at $1,998.
