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

In Tuesday's post-holiday trading, the Shanghai Composite Index advanced by 0.43%, closing at 3,362, while the Shenzhen Component Index experienced a modest increase of 0.16%, reaching 10,057. These gains managed to recover losses incurred during the previous session, despite the release of lackluster economic data and the resurgence of trade tensions with the United States. According to a private survey, China's manufacturing sector unexpectedly contracted in May, with new export orders declining at an accelerated rate. This highlights the ongoing repercussions of US tariffs. Trade tensions further escalated when Beijing dismissed President Donald Trump's accusation of China violating a temporary trade agreement and asserted it would retaliate if necessary. Nonetheless, investor sentiment remained cautiously optimistic, buoyed by speculation that President Trump and Chinese President Xi Jinping might engage in discussions this week to address trade issues. Notable gainers included Shenzhen Forms with a 10.6% increase, Industrial Bank with a 4.7% rise, Ourpalm Co jumping 14.5%, and Montage Technology up by 5.8%.