HONG KONG: China and Hong Kong stocks inched higher on Monday, as markets reacted cautiously to positive trade data and awaited GDP figures amid lingering tariff concerns.
At market close, China’s blue-chip CSI300 Index edged up 0.1%, while the Shanghai Composite Index gained 0.3%, hovering near its highest level since October.
In Hong Kong, the benchmark Hang Seng Index added 0.3% after swinging between gains and losses during the day, while the tech index added 0.7%.
Fresh data released on Monday showed China’s trade activities rebounded as exporters capitalised on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline.
Exports rose 5.8% year-on-year in June, beating forecast, while imports rebounded 1.1% following a 3.4% decline in May.
Markets are now watching second-quarter GDP data due Tuesday, which is projected to grow 5.1%, according to a Reuters poll of economists. China’s economy is now on track to achieve its 5% annual growth target, but might face growing pressure as upcoming US tariffs loom, according to analysts at BOC International.
“We recommend paying attention to the July Politburo meeting’s guidance on economic growth prospects for the second half of the year and the deployment of growth stabilization measures. We temporarily maintain our optimistic view on risk assets,” they said.
Leading gains in mainland on Monday, the banking sector climbed 0.5% to recoup some of Friday’s loss. The energy sector added 1%.
However, the property sector slipped 1.4%, continuing to pare last week’s rally, which was spurred by speculation about potential stimulus measures.
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