China stocks log best day in a month ahead of Trump-Xi meeting

SHANGHAI: China stocks rebounded on Friday with the blue-chip CSI300 Index logging its best day in a month, while Hong Kong shares also gained as traders expect trade tensions to ease after next week’s meeting between the US and Chinese presidents.

China’s large-cap CSI300 Index closed 1.1 percent higher, posting its biggest one-day gain since mid-August. The Shanghai Composite Index rose 0.9 percent.

In Hong Kong, the Hang Seng Index climbed 0.6 percent.

For the week, CSI300 was largely flat, the Shanghai Composite edged up 0.6 percent, while the Hang Seng fell 0.2 percent.

US President Donald Trump will welcome his Chinese counterpart Xi Jinping in Washington next week for their second meeting this year, as the two leaders seek stability in a fraught relationship.

US Trade Representative Jamieson Greer said this month the countries will make “some announcements on agriculture and non-tariff barriers”. Traders will be watching for progress on an agreed mutual tariff reduction covering USD30 billion in goods.

With a US rate hike also in the rear view mirror, “the external risks have weakened”, Great Wall Securities said in a note.

Bets on China’s AI and chipmaking sectors are still advisable, the brokerage said.