Stocks in China and Hong Kong were largely flat on Monday after Beijing pledged to stabilize capital markets without announcing new stimulus to combat heavy tariffs on U.S.
Boosted by state-backed purchases, the Chinese market has jumped about 8% since early April, when U.S. President Donald Trump's "reciprocal tariffs" hit global stocks.
But the recovery is losing steam. Additional state support from Beijing is lacking. There is also no indication whether China and the United States will start trade talks, let alone reach a deal.
The CSI300 index fell 0.14%, while the SSEC index in Shanghai fell 0.2%.
Hong Kong's Hang Seng Index lost 0.04%.
China's top officials on Friday pledged to support businesses and workers most affected by the impact of U.S. tariffs and urged the country to prepare for worst-case scenarios.
Asian stock markets lose strength amid uncertainty
The Communist Party's Politburo has promised to stabilize and reinvigorate capital markets, but no additional support measures have been announced.
Beijing’s efforts have put a floor under Chinese stocks, but extending the room to maneuver requires massive capital inflows or “really good news to rebuild confidence” undermined by the China-U.S. trade war, a strategist at Zheshang Securities said.
Meanwhile, on Sunday, US Treasury Secretary Scott Bessent did not support Trump's claim that tariff negotiations with China are ongoing. Bessent also said he did not know whether Trump had spoken to Chinese President Xi Jinping.
Beijing has called on Washington to remove the tariffs to create room for negotiations. At the same time, it has granted some exemptions to imports from the United States. These goods have been exempted from duties of 125%.
Asian stock markets closed mixed this session. The Nikkei index in Tokyo rose 0.4% to close at 35,839 points. The Hang Seng index in Hong Kong fell slightly by 0.04% to 21,971 points. In mainland China, the SSEC index in Shanghai fell 0.20% to 3,288 points, while the CSI300, which includes the largest companies in Shanghai and Shenzhen, fell 0.14% to 3,781 points. The South Korean market also performed well, with the Kospi index in Seoul rising 0.10% to close the session at 2,548 points. In Taiwan, the Taiex index rose 0.81% to 20,034 points. In Singapore, the Straits Times lost 0.31%, ending the day at 3,811 points, while in Sydney the S&P/ASX 200 advanced 0.36%, closing at 7,997 points.
Source: Reuters | Notícias Agrícolas
