FX.co ★ China Stocks Rise on Trade Deal Hopes

The Shanghai Composite Index edged up by 0.3% to approximately 3,350, while the Shenzhen Component jumped 1.2% to reach 10,250 on Monday. This uptick builds on gains from the previous week, sparked by encouraging signs of a reduction in tensions between China and the United States over trade issues. Talks held in Switzerland over the weekend were described as productive by US Treasury Secretary Scott Bessent, with China's Vice Premier He Lifeng highlighting the achievement of an "important consensus." A joint statement is anticipated later in the day. These developments come amidst ongoing economic challenges in China, as recent data indicated persistent deflationary pressure. Consumer prices in China decreased for a third consecutive month in April, and the quickest decline in producer prices in six months was observed, reflecting subdued domestic demand despite governmental efforts to stimulate spending. The technology sector led the market rally, with significant gains recorded by Avic Chengdu (+15.7%), Luxshare Precision (+3.5%), Eoptolink Technology (+1.7%), Shijiazhuang Changshan (+4.6%), and Jiangsu Hoperun (+1.1%).