logo
Chinese and Hong Kong stocks gain ahead of Sino-US trade talks

Chinese and Hong Kong stocks gain ahead of Sino-US trade talks

Hindustan Times3 days ago

*
US-China talks expected to mend rifts
*
Rare earths sector jumps as likely focus in negotiations
*
Tech shares in HK enter bull market
Hong Kong, - Chinese and Hong Kong stocks edged higher on Monday, led by the rare earth and technology sectors, as investors awaited high-level U.S.-China trade negotiations in London.
Investors were cautiously positive as the world's two largest economies seek to defuse their trade dispute, with China grappling with slow exports and deflation while the U.S. faces eroding confidence in its assets and economy.
U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will meet China's Vice Premier He Lifeng in the first meeting under the two countries' economic and trade consultation mechanism.
China's blue-chip CSI300 Index closed up 0.3% and the Shanghai Composite Index ended 0.4% higher. Hong Kong's benchmark Hang Seng advanced 1.6% to the highest level since March 21.
The offshore yuan struggled for direction and was last traded at 7.1852 per dollar.
Monday's meeting follows a rare leader-to-leader call between Chinese leader Xi Jinping and U.S. President Donald Trump on Thursday after tensions flared up again, with both sides accusing the other of violating a deal agreed last month.
The two sides agreed a 90-day pause and a sharp reduction in tariffs after talks in Geneva in early May, which left U.S. tariffs on Chinese goods at 30% from May 14 to August 12 and Chinese duties on U.S. imports at 10%. That brought temporary relief from a trade war that could bring $600 billion in two-way trade to a standstill, disrupting supply chains and impacting the global economy.
"We think there could be some favourable outcomes from the meeting as Trump has hinted some positive signs," analysts at China Securities said in a note, adding that any progress would offer markets some relief.
Leading onshore markets higher on Monday, the strategically-important rare earths sector - expected to be a key focus of the talks - advanced 2.4% onshore in its best single-day performance in over a month.
Technology shares led Hong Kong markets higher, with the Hang Seng Tech Index rising 2.8% to a one-month high. The subindex has gained over 20% since its April low, entering a technical bull market.
Chinese stocks have been struggling for direction since April 2, when Trump announced sweeping "reciprocal" tariffs that threatened to upend the global trade order.
The CSI300 Index onshore has barely budged from the April 2 level, and the Hang Seng has gained around 4% during the period, both lagging the recovery among major global markets.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump open to extending trade talks' deadline, but says it won't be necessary
Trump open to extending trade talks' deadline, but says it won't be necessary

India Today

time12 minutes ago

  • India Today

Trump open to extending trade talks' deadline, but says it won't be necessary

US President Donald Trump said he's willing to extend the July 8 deadline for completing trade talks with several countries. However, he believes an extension may not be to reporters before attending Les Misrables at the Kennedy Centre, Trump said, "We're rocking in terms of deals. We're dealing with quite a few countries, and they all want to make a deal with us." He noted that ongoing discussions include trade partners like Japan, South Korea, and the European expressed confidence that most agreements would be in place before the deadline. "I don't think it's a necessity," he said when asked about a possible extension. Trump also shared plans to move forward with trade terms soon. "At a certain point, we're just going to send letters out saying, 'This is the deal. You can take it, or you can leave it,'" he said. "We're not quite ready, but we're close."US OFFICIALS SIGNAL FLEXIBILITY FOR 'GOOD-FAITH' NEGOTIATORSTreasury Secretary Scott Bessent told the House Ways and Means Committee that countries negotiating seriously could see the July 8 deadline pushed back."It is highly likely that those countries -- or trading blocs like the EU -- who are negotiating in good faith, we will roll the date forward," Bessent said. "If someone is not negotiating, then we will not."advertisementThis is the Trump administration's first overt indication that it might prolong trade deadlines for nations involved in serious negotiations. He pointed out that the European Union, which had been slow earlier, is now showing signs of "better faith" in the talks. BLOODBATH IN MARKETS AFTER LIBERATION DAY TARIFFS Trump had announced the 90-day pause in tariffs on April 9. This came a week after he unveiled "Liberation Day" tariffs that targeted nearly all countries across the world. The announcement shook global markets, with the S&P 500 dropping more than 12% in four days -- the worst performance since the COVID-19 started their recovery on April 9 when Trump unexpectedly announced the pause. The recovery continued in early May when the Trump team agreed to dial back the triple-digit tariff rates it had imposed on goods from China. Those events have given rise to what some on Wall Street have parodied as the "TACO" trade - an acronym for Trump Always Chickens move led many on Wall Street to jokingly refer to the situation as the "TACO" trade -- acronym for "Trump Always Chickens Out."

5 killed in aid convoy attack in Gaza, US-backed group blames Hamas
5 killed in aid convoy attack in Gaza, US-backed group blames Hamas

First Post

time14 minutes ago

  • First Post

5 killed in aid convoy attack in Gaza, US-backed group blames Hamas

The group said in a statement that around 10 pm local time 'a bus carrying more than two dozen members of the Gaza Humanitarian Foundation team… were brutally attacked by Hamas. read more A woman crouches next to boxes of the US-backed Gaza Humanitarian Foundation, as Palestinians gather to collect what remains of relief supplies, in Rafah. Reuters The US-backed Gaza Humanitarian Foundation, the controversial aid group that has been at the forefront of distributing food in the region, has accused Hamas of attacking one of its buses carrying staffers to a distribution centre. The group has said that at least five of its members were killed and several others were injured in the assault. The group said in a statement that around 10 pm local time 'a bus carrying more than two dozen members of the Gaza Humanitarian Foundation team… were brutally attacked by Hamas.' STORY CONTINUES BELOW THIS AD 'We are still gathering facts, but what we know is devastating: there are at least five fatalities, multiple injuries, and fear that some of our team members may have been taken hostage,' the statement read. Refresh for updates

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store