Cautious Optimism as Sino-U.S. Trade Truce Boosts Chinese Markets Amid Unease

Chinese shares saw slight gains while Hong Kong stocks declined as initial excitement over a Sino-U.S. trade truce wanes. The trade agreement raised markets globally and lifted the U.S. dollar, but investor caution persists. China's blue-chip stocks rose slightly, while Hong Kong indexes demonstrated notable losses.

Markets in China experienced minor gains and those in Hong Kong faced drops as the initial excitement over a recent trade truce between China and the U.S. started fading. The truce resulted from weekend discussions in Geneva, providing temporary tariff relief that initially spurred global market rallies.

Despite exceeding market expectations, analysts expressed concerns about the ongoing negotiations and the potential challenges ahead. This uncertainty affected investor sentiment, contributing to a cautious approach despite China's blue-chip CSI300 Index and Shanghai Composite Index posting slight upticks.

In contrast, Hong Kong's Hang Seng China Enterprises Index and Hang Seng Index saw declines, experiencing a fallback from a recent peak. Analysts mentioned that institutional investors might expect reduced policy support from Beijing due to the positive trade developments, adding to the cautious atmosphere.

(With inputs from agencies.)