China and Hong Kong Stocks Surge Amid Policy Optimism

China and Hong Kong stocks rose on positive manufacturing data and expected policy support from Beijing. The Shanghai Composite and Hang Seng Index saw gains, buoyed by improving economic momentum and Beijing's stimulus efforts. Analysts are hopeful for continued domestic policy support despite external pressures.

China and Hong Kong stock markets experienced notable gains on Monday, buoyed by positive manufacturing data and the anticipation of sustained policy backing from Beijing. The Shanghai Composite index surged by 1.13%, closing at 3,363.98, marking a substantial rise from its 1.4% increase in November.

The CSI300 index, highlighting China's resilience, climbed 0.79%. The auto sector led with a 4.78% uptick, while the real estate index grew by 2.12%. Simultaneously, the Hang Seng Index in Hong Kong recorded a 0.65% increase, concluding at 19,550.29.

Market sentiment received a boost from manufacturing data indicating expansion, as Beijing's extensive stimulus package since September takes effect amidst escalating trade tensions from President-elect Donald Trump. The Caixin/S&P Global manufacturing PMI showed a promising rise from 50.3 in October to 51.5 in November.