China Stocks Rise Amid U.S.-China Trade Talks Anticipation

China and Hong Kong stocks climbed as investors focused on the potential extension of the U.S.-China trade truce deadline. Despite deflationary pressures, the markets remained upbeat, with sectors like liquor and AI experiencing gains. Investors are also eyeing earnings from major Chinese companies later this week.

On Monday, China and Hong Kong stocks enjoyed a rise as investors concentrated on the possibility of extending the U.S.-China trade truce deadline.

The markets showed resilience, dismissing data indicating continuous deflationary pressures in China, the world's second-largest economy. The liquor sector saw a 2.1% increase, and AI stocks rose by 1.7%.

Shares of major lithium producers surged significantly. Analysts suggest that U.S.-China relations will minimally impact A-shares until President Trump's anticipated China visit. Additionally, investors are anticipating earnings reports from major companies like Tencent and Alibaba later in the week.

(With inputs from agencies.)