FX.co ★ Hang Seng Rebounds Ahead of Key China Economic Data

The Hang Seng index rebounded by 226 points, or 0.9%, closing at 24,733 on Monday, breaking a four-day losing streak as all sectors saw gains. Investors are now focusing on developments surrounding the U.S.-China trade agreement, which is set to expire on August 12. Optimism pervades as U.S. Treasury Secretary Bessent expressed confidence in reaching a trade deal with China following recent discussions in Stockholm. Meanwhile, Chinese leaders have committed to supporting the economy while curbing "disorderly competition," as discussed in last week's Politburo meeting. Additionally, Beijing announced that the fourth plenum will convene in October, likely to deliberate on the upcoming five-year plan. However, the upward momentum was tempered by cautious anticipation of China's upcoming July trade report and CPI/PPI data. In related news, a privately compiled services PMI for July is expected on Tuesday, succeeding official figures that revealed the slowest services sector growth in eight months. Both Zhejiang Leapmotor and Xpeng experienced significant gains of 8.3% and 2.5% respectively, attributed to robust July delivery figures. Other notable performers included Laopu Gold, which rose by 6.3%, Lenovo by 4.7%, and SMIC with a 2.8% increase.