China Stocks Flat Amidst Politburo Meeting Anticipation

China stocks remained mostly unchanged on Monday as investors awaited the crucial Politburo meeting for potential stimulus announcements. Hong Kong stocks performed better, mirroring regional gains. Analysts expect the meeting to offer more support policies. Sector-specific indices posted mixed results, with slight movement in Shanghai's Composite and notable gains in Japan's Nikkei index.

China stocks remained largely steady on Monday as investors awaited an upcoming Politburo meeting, hoping for announcements of stimulus measures to support the world's second-largest economy. In contrast, Hong Kong stocks followed regional peers with higher performance.

This week is critical, packed with earnings reports and central bank meetings from the United States, UK, and Japan. While the US and UK might lean towards easing, Japan could move to increase borrowing costs as a step toward 'normality.' Market analysts from Goldman Sachs anticipate that the July Politburo meeting will maintain a cautious stance on growth challenges, strengthening their support for fiscal and housing measures.

At midday, the Shanghai Composite index showed a minimal increase, while the blue-chip CSI300 index fell. Various sector-specific indices displayed mixed performances. Around the region, broader Asian markets saw positive sentiment, with Japan's Nikkei index surging.

(With inputs from agencies.)