Market Optimism Surges as Trump-Xi Call Eases Tensions

Stocks in China and Hong Kong experienced gains after a call between President-elect Donald Trump and Chinese President Xi Jinping calmed tensions. The Hang Seng and CSI300 indices saw significant increases, driven by tech advancements, despite anticipated market volatility and upcoming policy announcements from Trump.

Stocks in China and Hong Kong soared on Monday following a reassuring call between U.S. President-elect Donald Trump and Chinese President Xi Jinping. This dialogue reduced some of the ongoing tensions between the two countries, leading to notable increases in stock indices.

China's blue-chip CSI300 Index climbed by 0.9% before midday, building on a 2.1% gain from the previous week. Meanwhile, the Shanghai Composite Index rose 0.5% to reach 3,257.23. In Hong Kong, the Hang Seng Index witnessed a 2.3% surge, marking its strongest performance in five weeks.

The technology sector dominated the advancers, with Meituan, a food delivery service, jumping 6.8%, and e-commerce giant Alibaba growing by 6.1%. Despite the positive market sentiment sparked by Trump and Xi's discussion on critical issues like TikTok and trade, experts predict increased market volatility ahead as Trump prepares to announce several executive orders.

(With inputs from agencies.)