On Monday, the Hang Seng index surged by 389 points, or 1.6%, to close at 24,181, marking its highest level in nearly three months. This upward momentum followed losses in the previous session and was underpinned by widespread gains, driven by optimism surrounding imminent high-level trade discussions between the U.S. and China. Leading the charge were the technology stocks, with SMIC and Meituan both climbing 4.9%, while Alibaba posted a 2.0% increase. Meanwhile, rare-earth stocks were on the rise as well, benefitting from Beijing's decision to approve certain export applications, which helped alleviate trade tensions.
Despite these gains, weaker Chinese economic indicators tempered further market advances. Notably, May's export figures showed the slowest growth in three months, coupled with a sharper decline in imports. Additionally, Chinese consumer prices fell for the fourth consecutive month, and the Producer Price Index (PPI) recorded its most significant decline in nearly two years. As investors now turn their attention to U.S. inflation data set to be released on Wednesday, there is anticipation over how it might impact expectations for Federal Reserve rate cuts.
Giant Biogene saw its shares rise by 3.1% following an announcement from a key shareholder about plans to increase their stake. Other notable top performers included Innovent Biologics, which surged 8.0%, Kuaishou with a 5.5% gain, and Trip.com up by 4.4%.
