Hopes of further stimulus support and expectations of a Fed rate cut tempered the impact of August’s weak data.
Looking Ahead
The outcome of US-China trade talks could be crucial for Mainland China and Hong Kong-listed stocks. Easing trade tensions and progress toward a trade agreement could lift sentiment. However, an escalation in the trade war would likely weigh on risk assets.
US-China trade talks resumed on Sunday, September 14, amid calls from the US administration to hike tariffs on China. CN Wire reported:
“US and Chinese officials began talks in Madrid on Sunday on their strained trade ties, a looming divestiture deadline for Chinese short video app TikTok, and Washington’s demands that its allies place tariffs on China over its purchases of Russian oil.”
Beyond trade talks, traders should track Beijing’s policy pledges. Measures to support the housing sector, the labor market, and stimulus aimed at boosting consumption could counter the impact of rising US-China tensions on regional stocks.
Track the latest developments and policy signals here. Given the latest data, a cautious approach is essential.
