FX.co ★ Hong Kong Stocks Rally Ahead of US-China Trade Talks

Hong Kong's stock market witnessed a notable increase, with shares climbing 346 points, equivalent to a 1.5% rise, reaching 24,138 during Monday morning's trading session. This marks a recovery from previous losses and a new 12-week peak, driven by upward momentum across all sectors. The rally was predominantly fueled by rare-earth and technology stocks, as investors anticipate significant U.S.-China trade discussions. Today in London, U.S. Treasury Secretary Bessent will meet with China's Vice Premier He Lifeng in an effort to address trade disputes between the two largest global economies. This meeting was preceded by a rare phone conversation last Thursday between China's President Xi Jinping and U.S. President Trump, amidst ongoing tensions related to trade and critical mineral sectors. Despite the upswing, gains were moderated due to heightened deflation risks within China, evidenced by a fourth consecutive month of declining consumer prices in May, along with the most significant drop in producer prices in almost two years. Additionally, a sense of caution lingered as the market awaited China's trade data for May, expected later in the day. Early successful performers included Innvent Biologics, which rose by 7.3%, Kuaishou Technology at 7.0%, Meituan with a 5.2% increase, and SMIC which advanced by 5.0%.