FX.co ★ Hang Seng Logs Gains for 3rd Session on Upbeat China Data

The Hang Seng Index advanced by 64 points, or 0.3%, to conclude at 24,203 on Monday, marking its third consecutive session of gains. This uptick was largely fueled by encouraging trade data from China, where exports increased by 5.8% year-over-year in June, surpassing expectations of 5%. This growth was driven by firms expediting shipments in the context of a tenuous tariff ceasefire, with an August deadline looming. Conversely, imports saw a modest recovery, rising by 1.1% after experiencing a 3.4% decline in May. Further buoying investor sentiment, June saw an unexpected acceleration in new yuan loans, influenced by a traditional upswing in loan issuance and strong government bond sales. Despite this positive outlook, gains were tempered by apprehensions regarding the impending release of China's Q2 GDP data on Tuesday, which may reflect renewed economic pressures from ongoing trade tensions. In contrast, U.S. futures experienced a notable downturn following President Trump’s announcement of a 30% tariff imposition on imports from the EU and Mexico, set to take effect on August 1. The upward movement in the Hang Seng was led by the consumer and tech sectors, with significant gains seen in Kuaishou Tech (3.5%), JD Health International (3.4%), Hansoh Pharmaceutical (3.3%), and Pop Mart International (2.1%).