China, Hong Kong stocks rebound after steep weekly loss
HONG KONG : Chinese and Hong Kong stocks inched higher today, recovering from last week's sharp declines, as defense and banking stocks led gains.
By the midday break, the Shanghai Composite index was up 0.2% at 3,567.02 points, recovering from losses in the opening hour.
The blue-chip CSI300 index was barely changed.
The defence sector led the onshore market higher with a 2.2% gain.
The banking sector added 1% and semiconductors gained 0.4%.
The small gains today came after markets booked their steepest losses since April last week.
The bullish trend for Chinese equities has started to show signs of slowing as the much anticipated Politburo meeting and tariff negotiations with the US both failed to deliver positive surprises.
'Market sentiment is becoming more volatile as positive catalysts are losing momentum,' Citic Securities said in a note, adding that investors might shift focus to defensive sectors and those more insulated from external shocks.
In Hong Kong, the benchmark Hang Seng Index was up 0.5% at 24,627.25, also recovering from last week's loss.
The tech sector jumped 0.9% and AI-related shares added 1%, leading markets higher.
Looking ahead, markets are awaiting new developments on the trade truce between China and the US that expires on Aug 12.
US treasury secretary Scott Bessent said on Friday that Washington has the makings of a deal and was 'optimistic' about the path forward.
China's trade data and CPI readings later this week will also give investors more clues about the health of the world's second-largest economy.
'Given rising uncertainties in the foreign market, especially in the US where Trump's intervention of economic reporting undermines the efficacy of policies, both on- and off-shore Chinese markets will likely be under pressure in the near term,' Hong Hao, CIO at Lotus Asset Management, said in a note.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Muhyiddin denies defending subsidies for foreigners
PN chairman Muhyiddin Yassin said the coalition's fundamental policy on subsidies has always been that they should be for Malaysians, not foreigners. PETALING JAYA : Perikatan Nasional chairman Muhyiddin Yassin has denied defending the distribution of government subsidies to foreigners, urging Prime Minister Anwar Ibrahim to furnish proof he had ever made such a statement. In a video posted on Facebook, Muhyiddin said Anwar's claim that he had made such a remark was slanderous. 'I have never said such a thing. From the beginning, our fundamental policy on subsidies has been that they are meant for Malaysians, not foreigners. 'I want to ask where Anwar read or heard that (purported statement), because there's definitely none. 'What was the source, and was it genuine or fake?' asked the Bersatu president. Earlier today, Sinar Harian quoted Anwar as saying that Muhyiddin had questioned the government for burdening foreigners when they had also made significant contributions to the country. The prime minister said the government had decided on targeted subsidies for electricity and RON95 petrol so that they could continue helping Malaysians while reducing the nation's fiscal deficit.
Free Malaysia Today
4 hours ago
- Free Malaysia Today
Glovemaker's subsidiary gets RM101mil additional tax bill
Hartalega Holdings Bhd said further announcements would be made as and when there are material developments. (File pic) KUALA LUMPUR : Hartalega Holdings Bhd's wholly-owned subsidiary, Hartalega NGC Sdn Bhd, has received a notice of additional assessment amounting to RM101.36 million from the Inland Revenue Board (LHDN) for the assessment years 2017 to 2022. In a filing with Bursa Malaysia, Hartalega said the notice received on Aug 4 involved additional tax assessments of RM13.92 million for 2017, RM36.35 million for 2018, RM10,695 for 2019, RM32.89 million for 2020, RM18.10 million for 2021 and RM90,625 for 2022. 'The company is currently seeking legal advice and evaluating its legal options, which may include initiating a formal appeal to the LHDN,' Hartalega said. It added that further announcements would be made as and when there are material developments.
Malay Mail
8 hours ago
- Malay Mail
Ringgit ends higher against US dollar on Fed rate cut hopes
KUALA LUMPUR, Aug 5 — The ringgit continued to close higher against the US dollar as expectations of an interest rate cut by the US Federal Reserve (Fed) gained momentum, said an analyst. At 6pm, the local note climbed to 4.2260/2310 against the greenback from yesterday's close of 4.2350/2385. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that risky assets such as equities have been rising as a lower interest environment would be positive for corporate finances, especially on their cost of borrowings. Commenting on the US Fed, the economist noted that a series of Fed speakers are expected to shed more light on the future direction of US interest rates. He noted that several Fed officials, San Francisco Fed President Mary Daly, Boston Fed President Susan Collins, and Fed Governor Lisa Cook, will be speaking to the public on Thursday. 'Our sense is that the market would want to hear the latest conviction among the Fed as to how the interest rate would evolve in the months to come, especially in the September Federal Open Market Committee meeting,' he told Bernama. At the close, the ringgit ended firmer against major currencies. It rose against the Japanese yen to 2.8618/8654 from 2.8652/8677 at the close on Monday, gained versus the British pound to 5.6159/6226 from 5.6296/6342, and was higher against the euro to 4.8772/8830 from 4.8978/9018 previously. The ringgit was also strengthened against regional peers. It improved against the Singapore dollar to 3.2793/2834 from 3.2878/2908, inched up versus the Thai baht to 13.0408/0627 from 13.0452/0616, strengthened against the Indonesian rupiah to 257.8/258.2 from 258.2/258.5 and improved against the Philippine peso to 7.33/7.34 from 7.38/7.39 previously. — Bernama
