China and Hong Kong Stocks Rebound Amid Mixed Economic Signals

China and Hong Kong stocks rose slightly as property and tech shares led gains. The boost follows mixed macroeconomic data and remains tempered by geopolitical tensions affecting market sentiment. While consumer spending showed signs of improvement, concerns over sustainability persisted amid uncertain tariff outlooks.

On Monday, China and Hong Kong stock markets witnessed marginal gains led primarily by property and technology sectors. Investor sentiment, however, remained cautiously optimistic due to mixed macroeconomic indicators and persisting geopolitical tensions that influenced market dynamics.

The blue-chip CSI300 Index in China rose by 0.3%, while the Shanghai Composite Index gained 0.4%. Hong Kong's Hang Seng Index also experienced a 0.7% increase. Despite reaching a six-month low in factory output growth, China's retail sales increased, providing temporary economic relief within the context of an uneasy trade truce with the U.S.

Contributing to May's consumption boost were the golden week holiday and mid-May e-commerce discounts, marking preparation for the '618' shopping event, analysts at UBS noted. However, questions remain about the lasting effects of this momentum, especially as trade-in program benefits wane and tariff uncertainties persist.

(With inputs from agencies.)