HONG KONG: China and Hong Kong stocks rose in morning trade on Thursday as upbeat Chinese trade data added fuel to the recent market rally despite renewed U.S. tariff threats.
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China’s exports beat forecasts in July with outbound shipments up 7.2% year-on-year, customs data showed, as manufacturers made the most of a tariff truce with the U.S.
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Markets largely looked past U.S. President Donald Trump’s comments that he could announce further tariffs on goods from China, similar to the 25% duties slapped earlier on India over its Russian oil purchases, depending on what happens.
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Investors remain focused on the August 12 deadline, waiting to see if Beijing and Washington could reach a durable tariff agreement.
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The market shows a risk-on mood with better China July exports, and domestic conviction remains solid, Wee Khoon Chong, a senior APAC market strategist at BNY, Hong Kong, said in a note.
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BNY maintains its view that the Shanghai benchmark would test 3,700, he added.
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At the midday break, the Shanghai Composite index was up 0.1% at 3,638.40, after closing at its highest since late 2021 on Wednesday. The blue-chip CSI300 index was up 0.1%.
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The semiconductor sector led the way, with a 1.3% gain despite Trump saying the U.S. could levy a 100% tariff on some chip imports, as analysts say the move only has limited impact on Chinese chipmakers and could accelerate domestic production.
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Defensive sectors including banks, liquor and consumer staples were up 0.2%-0.5%.
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In Hong Kong, the benchmark Hang Seng Index also reversed earlier losses with a 0.5% gain, and the tech index added 0.5%.
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Local developers jumped 2.2% as New World Development surged as much as 16% on a report of take-private talks.
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