Chinese Stocks Surge Amid Anticipation of Economic Stimulus

Chinese stocks surged on Friday, with indices posting the best gains in weeks amid hopes of improved factory data and anticipated economic stimulus. Blue-chip, Shanghai, and Hong Kong indices saw significant increases, despite concerns over trade tensions and geopolitical risks. China's factory activity is expected to report modest growth.

On Friday, Chinese stocks demonstrated a strong rally, poised for monthly gains driven by optimism surrounding upcoming factory activity data. Investors are hopeful for increased economic stimulus following a pivotal policy meeting scheduled next month.

Midday trading saw China's blue-chip CSI300 index up by 2.01%, marking its most significant rise in three weeks. The Shanghai Composite index also gained 1.59%, reaching 3,348.20 points. Financial, consumer staples, real estate, and healthcare sectors all experienced notable increases.

Hong Kong markets mirrored this growth, with the Hang Seng Index climbing 1.29% to 19,616.44. However, continued geopolitical uncertainties and tariff risks suggest potential month losses. Factory activity is expected to expand modestly, despite the looming threat of new U.S. tariffs, while property markets show signs of stabilization.

(With inputs from agencies.)