China Stocks Rise Near 3-Month High as Manufacturing Expands

Chinese stock markets showed mixed but generally resilient performance amid ongoing trade tensions and manufacturing challenges. The CSI 300 and Shanghai Composite indices hovered near three-month highs, supported by gains in sectors like defense and technology, while Hong Kong's Hang Seng index retreated slightly after a strong first half of the year. Manufacturing PMI data indicated a return to expansion in some surveys, such as the Caixin/S&P Global index, but official PMI figures still reflected contraction, though at a slower pace. A recent trade agreement between China and the U.S. eased some export control restrictions, contributing to cautious optimism among investors and analysts. Despite the fragile trade truce, macroeconomic indicators suggest potential resilience in exports and domestic demand, leading to tempered expectations for further easing measures from Beijing. Overall, markets are adjusting to the evolving trade environment with a more optimistic near-term growth outlook.