China Stocks Surge Amid Optimism for Economic Stimulus

China's stock markets saw gains on Monday with the Shanghai Composite Index up 0.7%, driven by expectations of new economic stimulus from Beijing. Hong Kong shares also hit a three-month high, boosted by U.S. rate cuts. Market analysts foresee further benefits for Chinese exports from global monetary easing.

China's stock markets rallied on Monday, marking a fourth consecutive session of gains. The Shanghai Composite Index climbed 0.7% by lunchtime, driven by high expectations for fresh economic stimulus measures from Beijing. Adding to the optimism, the 30-year treasury yield hit a record low.

On the other side, Hong Kong shares, more sensitive to the U.S. rate-cutting cycle that began last week, surged to a three-month high. Notable gains were observed in energy, tech, and banking sectors. China's blue-chip CSI 300 index also rose by 0.7%, while the Hang Seng Index was up 0.6%.

Analysts like Yang Chao from Galaxy Securities forecast that U.S. rate cuts could lead to additional easing by global central banks, potentially benefiting Chinese exports. In Hong Kong, the Hang Seng sub-index tracking energy shares rose by 1.7%, reflecting strong market sentiment.

(With inputs from agencies.)