Market Jitters: China and Hong Kong Stocks Edge Up Amid Global Volatility

Mainland China and Hong Kong stocks closed slightly higher as investors exercised caution before a legislative meeting in Beijing and the U.S. presidential election. The market reacted to upcoming events with a cautious 'wait and see' stance, with fiscal policies and earnings recovery in focus.

On Monday, Mainland China and Hong Kong stocks saw marginal gains, with investors taking a cautious approach ahead of significant events, including a legislative meeting in Beijing and the U.S. presidential election.

The Shanghai Composite index ended the day with an increase of 0.68% at 3,322.20 points, while the blue-chip CSI300 index rose by 0.2%. Consumer staples gained 1.55%, and the real estate index surged 2.22%. Meanwhile, Hong Kong's Hang Seng index edged up 0.04% to 20,599.36 points, and the Hang Seng China Enterprises index rose 0.08% to 7,391.22 points.

As the U.S. election approaches, with Donald Trump and Kamala Harris polling closely in swing states, investors fear a contested result could disrupt global markets. To stabilize its economy, Beijing is relying on financial stimulus and liquidity measures while focusing on policy impacts and earnings recovery to support the market's long-term growth.

(With inputs from agencies.)