China's Market Moves Amid US Trade Tensions

China's stock market dipped ahead of Labour Day, impacted by U.S. tariffs causing export order declines. The Hong Kong market saw slight gains due to tech and property shares. Factory activity contracted sharply, hinting at more government stimulus to combat the trade war effects.

In a week leading to the Labour Day holiday, China's stock markets experienced a minor dip as traders hesitated in taking fresh positions. Contributing to this caution was a downturn in export orders, a consequence of the aggressive tariffs imposed by the U.S.

Conversely, the Hong Kong market edged up slightly, buoyed by a surge in technology stocks and a resurgence in property shares. Despite these gains, the Hang Seng Index recorded a 5% fall for April, marking its steepest monthly decline in over a year.

The broader economic backdrop in China showed factory activity contracting at its swiftest rate in 16 months, a side effect of the ongoing U.S.-China trade war. Analysts expect Beijing to ramp up fiscal measures, while certain stock sectors like tech and consumer goods remain poised for growth amid potential policy shifts.

(With inputs from agencies.)