China and Hong Kong Stocks Rebound Amidst Industrial Profit Recovery

China and Hong Kong stocks rebounded today, led by a less severe decline in industrial profits and hopes for more supportive Chinese policies against U.S. tariffs. The Shanghai Composite Index rose by 1.53% as other sectors like defense and tech saw significant gains. Market sentiment was fueled by the possibility of new economic measures from Beijing.

In a turnaround for the Chinese stock market, shares surged today as investors welcomed data indicating a less severe decline in industrial profits for October. The improvement sparked bets on possible stimulating measures from Beijing to deflect potential U.S. tariff threats.

The Shanghai Composite Index posted a 1.53% increase, its largest one-day gain in nearly three weeks, climbing out from recent lows. The tech sector rallied significantly as Huawei-related stocks benefited from the release of the company's new premium model.

Analysts suggest traders remain optimistic, anticipating further actions from policymakers in China to buffer against economic uncertainties and looming tariff risks from the U.S., potentially allowing China to regain its economic momentum.

(With inputs from agencies.)