HK, mainland markets rise on hopes for Xi-Trump summit

Hong Kong and mainland markets experienced a rise on Monday, buoyed by expectations that China and the United States would maintain a trade truce during the upcoming meeting between President Xi Jinping and President Donald Trump. The Hang Seng Index in Hong Kong surged 291 points, or 1.2%, to 25,042, while the technology index increased by 17 points, or 0.4%, to 4,423.

The China Enterprises Index also gained 114 points, or 1.4%, to 8,339. On the mainland, the Shanghai Composite Index climbed 38 points, or 0.97%, to 3,949, and the Shenzhen Component Index rose 89 points, or 0.65%, to 13,730. The combined turnover of the Shanghai and Shenzhen indices decreased slightly to 2.03 trillion yuan from the previous day's 2.08 trillion yuan.

Among the top gainers were medical services, cellular immunotherapy, and recombinant protein stocks, while precious metals and photolithography equipment shares experienced declines. The ChiNext Index added 26 points, or 0.8%, to close at 3,399. Market expectations for the summit are modest, with the primary focus being whether the leaders will indicate a continuation of the trade truce, which was last year.

Goldman Sachs analysts anticipate both sides will aim to preserve relative stability in US-China relations, though a comprehensive bilateral agreement seems improbable. In Seoul, the Kospi climbed 113 points, or 1.65%, to 7,007, driven by gains in chipmakers following positive export data and a rally in US semiconductor stocks.