FX.co ★ China Stocks Rise Despite Weak Data, Trade Tensions

In post-holiday trading on Tuesday, the Shanghai Composite saw a modest increase of 0.2% to exceed 3,350 points, while the Shenzhen Component edged up by 0.1% to reach 10,050 points. This recovery follows losses sustained in the previous session, even amid soft economic indicators and renewed trade tensions with the United States. A private survey indicated an unexpected contraction in China's manufacturing activity for May, with new export orders declining sharply, reflecting the continued effects of U.S. tariffs. Tensions escalated further after Beijing rejected accusations from U.S. President Donald Trump regarding a violation of a temporary trade agreement and asserted it would retaliate if necessary. Despite these challenges, investor sentiment stayed cautiously optimistic amid speculation that a phone conversation between Trump and Chinese President Xi Jinping could take place this week to address trade issues. Leading gainers included Shenzhen Forms, up 14.4%; Guangzhou Haige, rising 5.4%; Lakala Payment, increasing 3.2%; Ourpalm Co, gaining 14.7%; and Hyunion Holding, which saw a 10% surge.