Chinese Stocks Rebound Amid Optimism and Trade Tensions

Chinese and Hong Kong stocks experienced a rebound due to optimistic manufacturing data and expectations of new stimulus from Beijing's policy meetings. Despite moderate gains amid ongoing U.S.-China trade tensions, markets remained hopeful for delayed tariffs. China's economic outlook anticipates steady growth amid domestic and international challenges.

On Monday, Chinese and Hong Kong stocks rebounded, recovering some of the losses from the previous week. This movement was spurred by encouraging manufacturing data and anticipation of key policy meetings in Beijing that are expected to bring new stimulus measures.

The stock indexes saw modest gains as both China and the U.S. prepared to impose additional trade tariffs on one another. Investors, however, interpreted these actions as strategic posturing. The Hang Seng Index in Hong Kong rose by 1.2% by midday, rebounding from Friday's significant decline, while the Hang Seng Tech Index increased by 0.7%.

China's onshore stock performance improved slightly, with the CSI300 Index and Shanghai Composite Index both edging up after suffering losses the previous week. Analysts remain optimistic that U.S. tariffs might be deferred, although China's potential countermeasures might target American agricultural exports. Meanwhile, investors are closely monitoring Beijing's "Two Sessions" meetings, expecting discussions on boosting domestic demand despite challenges in policy stimulus sufficiency.

(With inputs from agencies.)