China, Hong Kong stocks rise on Trump-Xi trade talk optimism

Oct 27, 2025, 09:59 GMT+7
Reuters - Stocks in China and Hong Kong rallied on Monday, driven by renewed hopes for a U.S.-China trade deal after top officials from both sides outlined a framework aimed at defusing tensions ahead of a key leaders' meeting later this week.
China's benchmark Shanghai Composite Indexclimbed nearly 1%, just slightly shy of the psychologically significant 4,000-level, while the blue-chip CSI300 Indexwas up 1% at 0235 GMT. Hong Kong's benchmark Hang Seng Indexgained 0.9%.
Top Chinese and U.S. economic officials on Sunday hashed out the framework of a trade deal for U.S. President Donald Trump and Chinese President Xi Jinping to review later this week. It would pause steeper American tariffs and Chinese rare-earth export controls, U.S. officials said on Sunday.
"Investors have been sitting on the sidelines watching trade talks for a while, and the weekend developments were a pretty positive surprise. It will give markets a boost," said Kenny Ng, a securities strategist at Everbright Securities International.
Ng said market participants still need to see the final terms of the deal - whether it mirrors what was outlined over the weekend or contains unexpected elements.
Trump and Xi are due to meet on Thursday on the sidelines of the Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea, to sign off.
Tech majors traded in Hong Kong rose 1.3%.
China's yuan jumped to a more than one-month high against the U.S. dollar on Monday, while the country's 30-year government bond yield (CN30YT=RR) was up 1.4 basis points.
Still, market participants remained cautious about how long the current thaw in tensions might last.
"Both sides are still reliant on one another, and both are buying time to reduce this reliance," said Ting Lu, chief China economist at Nomura. "We view this cycle of tension, escalation and truce as the new normal for US-China relations."
"We are not surprised to see the truce again, and we won't be surprised to see another escalation in the next couple of months," Lu said.
Shares of China's non-ferrous metals companies (.CSISNMIM) rose as much as 3% as the benchmark three-month copper price rose to its highest point since May 2024 on Monday. The CSI Rare Earth Indexwas up 2%.

Sumber : Reuters