Market Update
China's Indexes Turned Lower, Zijin Mining In Focus
Li Chen
24 Aug, 2026
Hong Kong
Stocks in China turned sharply lower at the start of a new week on Monday amid rising geopolitical tensions and ahead of key quarterly earnings updates.
The Hang Seng Index dropped 2.1%, and the mainland-focused CSI 300 Index decreased 1.3% as investors stayed on the sidelines ahead of the release of earnings from BYD, CNOOC, and PetroChina.
Investor sentiment stayed cautious after a week of volatile trading amid a broad selloff in computer chipmakers.
Hong Kong and mainland China indexes ended the week on a mixed note amid a global sell-off in chip stocks despite strong domestic earnings, and trading remained cautious ahead of upcoming policy meetings.
Over the week, the Hang Seng Index advanced 2.3%, and the CSI 300 Index edged down 1.2%.
Investors awaited additional signals from policymakers at the end of the annual National People's Congress Standing Committee scheduled between August 25 and 28.
China Indexes and Stocks
The Hang Seng Index dropped 2.1% to 25,463.04, and the mainland-focused CSI 300 Index decreased 1.3% to 4,558.91.
Zijin Mining Group decreased 0.1% to HK $38.54 after the company released its first-half results.
The lithium and copper miner reported weaker-than-expected second quarter revenue of 95.6 billion yuan and adjusted earnings per share of breakeven largely because of production delays at the Kamoa copper mine.
Production of gold increased 13% to 47 tons; copper edged up 5%, excluding the impact of the Kamoa operation; and mined lithium production increased to 44,000 tons of equivalent lithium carbonate in the first half.
The gold price per ounce in London jumped 53% to $4,693 from $3,067.
The company raised its shareholder return estimate to 35% from the previous estimate of 30% over the three years leading to 2028.
Revenue in the first half increased 15.8% to 194.2 billion yuan from 167.7 billion yuan, net income soared 68.2% to 39.2 billion yuan from 23.3 billion yuan, and basic earnings per share advanced to 1.473 yuan from 0.877 yuan.
The company declared an interim dividend of 0.42 yuan per share, totaling 11.1 billion yuan.
Japan's Annual CPI Accelerated In July to 7-Month High, Nikkei 225 Extended Weekly Losses to 4%
Akira Ito
21 Aug, 2026
Tokyo
Japan's indexes lacked direction in Friday's trading as global bond yields rebounded and investors reviewed the latest inflation update.
The Nikkei 225 Stock Average decreased 0.4%, the broader TOPIX inched higher 0.1%, and the yen strengthened to 159.05 against the U.S. dollar.
Global bond yields rebounded as investors reassessed the latest move from the U.S. Treasury Department to calm volatility and curb the rise in yields in long-term rates.
The yield on 10-year U.S. Treasury notes retraced to 4.71%, Japanese government bonds edged up to 2.85%, and bond yields in Germany and France rebounded to multi-year highs as the initial support for the U.S. Treasury Department's expanded buyback program faded.
Japan's Annual CPI Accelerated in July
Japan's inflation accelerated for the second consecutive month in July, marking the largest increase since January.
Japan's annual consumer inflation accelerated to 1.9% from a marginally revised 1.6% in the previous month, said the Ministry of Internal Affairs & Communications.
A slower decline in electricity prices, coupled with scaled-back government energy subsidies, drove the pickup in inflation.
At the same time, annual inflation for food prices accelerated to 3.5% from 3.25, transportation edged up to 2.6% from 2.5%, and transportation goods rose to 3.7% from 2.3% in the previous month, respectively.
Core inflation, which excludes fresh food, accelerated to 1.8% from 1.6% in June, reaching the highest level since March, though it remained the Bank of Japan's 2% target rate for a sixth consecutive month.
Core-core inflation, which excludes food and energy, which reflects underlying price trends, increased 1.9% in July.
The ministry officials said it is difficult to assess the underlying inflation trends, given the impact of state subsidies introduced since March to ward off the surge in fuel prices due to higher costs of imported crude oil prices.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.4% to 65,951.94, and the broader TOPIX added 0.1% to 4,064.95.
For the week, the Nikkei 225 Stock Average fell 4.1%, and the broader TOPIX decreased 3.2%.
Tokyo Electron increased 0.5% to ¥54,550.0, Advantest Corp. edged up 1.0% to ¥35,730.0, and SoftBank Group decreased 1.6% to ¥5,298.0.
Nippon Yusen KK soared 4.4% to ¥7,093.0, Mitsui OSK Lines edged up 4.1% to ¥7,245.0, and Kawasaki Kisen Kaisa Ltd jumped 6.5% to ¥3,380.0.
Japan's Annual CPI Accelerated In July, Nikkei 225 Extended Weekly Losses to 4%
Akira Ito
21 Aug, 2026
Tokyo
Japan's indexes lacked direction in Friday's trading as global bond yields rebounded and investors reviewed the latest inflation update.
The Nikkei 225 Stock Average decreased 0.4%, the broader TOPIX inched higher 0.1%, and the yen strengthened to 159.05 against the U.S. dollar.
Global bond yields rebounded as investors reassessed the latest move from the U.S. Treasury Department to calm volatility and curb the rise in yields in long-term rates.
The yield on 10-year U.S. Treasury notes retraced to 4.71%, Japanese government bonds edged up to 2.85%, and bond yields in Germany and France rebounded to multi-year highs as the initial support for the U.S. Treasury Department's expanded buyback program faded.
Japan's Annual CPI Accelerated in July
Japan's inflation accelerated for the second consecutive month in July, marking the largest increase since January.
Japan's annual consumer inflation accelerated to 1.9% from a marginally revised 1.6% in the previous month, said the Ministry of Internal Affairs & Communications.
A slower decline in electricity prices, coupled with scaled-back government energy subsidies, drove the pickup in inflation.
At the same time, annual inflation for food prices accelerated to 3.5% from 3.25, transportation edged up to 2.6% from 2.5%, and transportation goods rose to 3.7% from 2.3% in the previous month, respectively.
Core inflation, which excludes fresh food, accelerated to 1.8% from 1.6% in June, reaching the highest level since March, though it remained the Bank of Japan's 2% target rate for a sixth consecutive month.
Core-core inflation, which excludes food and energy, which reflects underlying price trends, increased 1.9% in July.
The ministry officials said it is difficult to assess the underlying inflation trends, given the impact of state subsidies introduced since March to ward off the surge in fuel prices due to higher costs of imported crude oil prices.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.4% to 65,951.94, and the broader TOPIX added 0.1% to 4,064.95.
For the week, the Nikkei 225 Stock Average fell 4.1%, and the broader TOPIX decreased 3.2%.
Tokyo Electron increased 0.5% to ¥54,550.0, Advantest Corp. edged up 1.0% to ¥35,730.0, and SoftBank Group decreased 1.6% to ¥5,298.0.
Nippon Yusen KK soared 4.4% to ¥7,093.0, Mitsui OSK Lines edged up 4.1% to ¥7,245.0, and Kawasaki Kisen Kaisa Ltd jumped 6.5% to ¥3,380.0.
China's Indexes Extended Weekly Gains as Global Bond Yields Resumed Upward March
Li Chen
21 Aug, 2026
Hong Kong
China's benchmark indexes meandered as investors stayed on the sidelines amid a lack of fresh market catalysts.
The Hang Seng Index advanced 0.7%, and the mainland-focused CSI 300 Index edged up 0.5% as investors held out for possible stimulative measures from policymakers as early as next Friday.
The National People's Congress Standing Committee is scheduled to meet in Beijing on August 25-28, and investors are hoping for more concrete steps to revive economic growth after a string of weak economic data was reported for July.
China's jobless rate, fixed-asset investment, new home prices, retail sales, and industrial production for July confirmed a two-speed economy, and resilient exports were overshadowed by weak domestic demand growth.
Global bond yields rebounded as investors reassessed the latest move from the U.S. Treasury Department to calm volatility and curb the rise in yields in long-term rates.
The yield on 10-year U.S. Treasury notes retraced to 4.71%, Japanese government bonds edged up to 2.85%, and bond yields in Germany and France rebounded to multi-year highs as the initial support for the U.S. Treasury Department's expanded buyback program faded.
China Indexes and Stocks
The Hang Seng Index increased 0.7% to 25,867.12, and the mainland-focused CSI 300 Index edged up 0.5% to 4,616.83.
For the week, the Hang Seng Index advanced 2.3%, and the CSI 300 Index edged down 1.2%.
Banks and financial services providers traded down for the second consecutive session, after the People's Bank of China left its loan prime rates unrevised.
ICBC, China Construction Bank, and Agricultural Bank of China declined between 0.2% and 0.4%, but HSBC edged up 1.6% to HK $163.30.
China's Indexes Extended Weekly Gains as Global Bond Yields Resumed Upward March
Li Chen
21 Aug, 2026
Hong Kong
China's benchmark indexes meandered as investors stayed on the sidelines amid a lack of fresh market catalysts.
The Hang Seng Index advanced 0.7%, and the mainland-focused CSI 300 Index edged up 0.5% as investors held out for possible stimulative measures from policymakers as early as next Friday.
The National People's Congress Standing Committee is scheduled to meet in Beijing on August 25-28, and investors are hoping for more concrete steps to revive economic growth after a string of weak economic data was reported for July.
China's jobless rate, fixed-asset investment, new home prices, retail sales, and industrial production for July confirmed a two-speed economy, and resilient exports were overshadowed by weak domestic demand growth.
Global bond yields rebounded as investors reassessed the latest move from the U.S. Treasury Department to calm volatility and curb the rise in yields in long-term rates.
The yield on 10-year U.S. Treasury notes retraced to 4.71, Japanese government bonds edged up to 2.85%, and bond yields in Germany and France rebounded to multi-year highs as the initial support for the U.S. Treasury Department's expanded buyback program faded.
China Indexes and Stocks
The Hang Seng Index increased 0.7% to 25,867.12, and the mainland-focused CSI 300 Index edged up 0.5% to 4,616.83.
For the week, the Hang Seng Index advanced 2.3%, and the CSI 300 Index edged down 1.2%.
Banks and financial services providers traded down for the second consecutive session, after the People's Bank of China left its loan prime rates unrevised.
ICBC, China Construction Bank, and Agricultural Bank of China declined between 0.2% and 0.4%, but HSBC edged up 1.6% to HK $163.30.
Resurgent Bond Yields and Oil Prices Keep Wall Street Indexes In Check
Barry Adams
20 Aug, 2026
New York City
Wall Street indexes held near flatline after a winning session on Wednesday as investors reviewed the details of the U.S. Treasury's plans to ease pressure from the recent bond market rout.
The S&P 500 Index inched up 0.1%, the Nasdaq Composite edged higher 0.2%, and the yield on 10-year U.S. Treasury notes inched lower to 4.67%.
The Treasury Department said it plans to double repurchases of 10-, 20-, and 30-year bonds in the next few months, following a surge in long-term yield to a 19-year high earlier in the week.
Investors are increasingly worried that the sustained rise in fiscal deficit and the recent run-up in the defense budget are likely to push over debt at a faster pace.
Over the last four and a half years, the U.S. debt jumped by $10 trillion to $40 trillion, a staggering amount, as lawmakers in Washington showed little interest in reversing the course.
West Texas crude oil futures jumped 2.6% to $86.60 a barrel, and the Brent crude price increased 2.4% to $93.84 after the U.S. president vowed "economic warfare" on Iran and imposed additional sanctions on its supporters.
The United Arab Emirates said it suspended all trade with Tehran after two missiles were fired towards the UAE, both of which splashed down in the Persian Gulf late Tuesday.
U.S. Movers
Walmart declined 5.2% to $108.25 after the retailer reported fiscal second-quarter results ending in July, but the company's cautious full-year outlook dragged down the stock.
Revenue increased 5.9% to $187.9 billion from $177.4 billion, consolidated net income eased to $6.5 billion from $7.2 billion, and diluted earnings per share softened to 80 cents from 88 cents a year ago.
U.S. comparable sales growth increased 2.6%, down from a 4.1% rise in the first quarter, and e-commerce sales jumped 23% across all its platforms globally.
The U.S. comparable sales increase was driven by a 1.5% rise in the number of transactions and a 1.1% advance in average ticket size.
For the third quarter, net sales are expected to increase between 3.0% and 3.75%, and adjusted earnings per share are expected to be between 62 cents and 64 cents.
For the full year, the world's largest retailer estimated its revenue to rise between 4% and 5% and adjusted earnings per share to range between $2.80 and $2.87.
The company said it repurchased 42.3 million shares for $5.1 billion at the end of its first half.
Nordson Corp. increased 1.9% to $309.92 after the precision engineering company released its fiscal third quarter results.
Sales increased to $817.7 million from $741.5 million, net income advanced to $152.8 million from $125.8 million, and diluted earnings per share rose to $2.72 from $2.22 a year ago.
Industrial precision segment sales increased to $367.3 million from $350.8 million, medical and fluid segment sales rose to $230.5 million from $219.5 million, and advanced technology segment sales surged to $219.9 million from $171.3 million a year ago.
The company revised its full-year sales to a new range between $3.035 billion and $3.075 billion.
Lowe's Companies increased 2.2% to $220.0 after the specialty retailer reported mixed results in its fiscal second quarter ending in July.
Net sales increased to $26.0 billion from $24.0 billion, net income was flat at $2.4 billion, and diluted earnings per share held steady at $4.27.
Comparable sales in the quarter edged up barely 0.2%, driven by increases in professional and home services sales, as well as a 15.7% surge in online sales, partially offset by a general macroeconomic weakness.
The company cited heightened competitive pricing pressure in July as competitors used tariff refund dollars to cut prices, and Lowe's chose not to match these promotions, labeling the dynamic as transitory rather than a permanent shift.
The company lowered its full-year 2026 sales outlook to $92 billion, from the previous estimated range between $92 billion and $94 billion, and diluted earnings per share to $11.75 compared to the previous range between $11.75 and $12.25.
Lowe's lowered the comparable sales estimate for the full year to flat compared to the previous estimate between flat and a 2% rise.
Resurgent Bond Yields and Oil Prices Keep Wall Street Indexes In Check
Barry Adams
20 Aug, 2026
New York City
Wall Street indexes held near flatline after a winning session on Wednesday as investors reviewed the details of the U.S. Treasury's plans to ease pressure from the recent bond market rout.
The S&P 500 Index inched up 0.1%, the Nasdaq Composite edged higher 0.2%, and the yield on 10-year U.S. Treasury notes inched lower to 4.67%.
The Treasury Department said it plans to double repurchases of 10-, 20-, and 30-year bonds in the next few months, following a surge in long-term yield to a 19-year high earlier in the week.
Investors are increasingly worried that the sustained rise in fiscal deficit and the recent run-up in the defense budget are likely to push over debt at a faster pace.
Over the last four and a half years, the U.S. debt jumped by $10 trillion to $40 trillion, a staggering amount, as lawmakers in Washington showed little interest in reversing the course.
West Texas crude oil futures jumped 2.6% to $86.60 a barrel, and the Brent crude price increased 2.4% to $93.84 after the U.S. president vowed "economic warfare" on Iran and imposed additional sanctions on its supporters.
The United Arab Emirates said it suspended all trade with Tehran after two missiles were fired towards the UAE, both of which splashed down in the Persian Gulf late Tuesday.
U.S. Movers
Nordson Corp. increased 1.9% to $309.92 after the precision engineering company released its fiscal third quarter results.
Sales increased to $817.7 million from $741.5 million, net income advanced to $152.8 million from $125.8 million, and diluted earnings per share rose to $2.72 from $2.22 a year ago.
Industrial precision segment sales increased to $367.3 million from $350.8 million, medical and fluid segment sales rose to $230.5 million from $219.5 million, and advanced technology segment sales surged to $219.9 million from $171.3 million a year ago.
The company revised its full-year sales to a new range between $3.035 billion and $3.075 billion.
Lowe's Companies increased 2.2% to $220.0 after the specialty retailer reported mixed results in its fiscal second quarter ending in July.
Net sales increased to $26.0 billion from $24.0 billion, net income was flat at $2.4 billion, and diluted earnings per share held steady at $4.27.
Comparable sales in the quarter edged up barely 0.2%, driven by increases in professional and home services sales, as well as a 15.7% surge in online sales, partially offset by a general macroeconomic weakness.
The company cited heightened competitive pricing pressure in July as competitors used tariff refund dollars to cut prices, and Lowe's chose not to match these promotions, labeling the dynamic as transitory rather than a permanent shift.
The company lowered its full-year 2026 sales outlook to $92 billion, from the previous estimated range between $92 billion and $94 billion, and diluted earnings per share to $11.75 compared to the previous range between $11.75 and $12.25.
Lowe's lowered the comparable sales estimate for the full year to flat compared to the previous estimate between flat and a 2% rise.
Japan's Trade Deficit Expanded In July, Higher Oil Prices and Changing Supply Base Dominated Imports
Akira Ito
20 Aug, 2026
Tokyo
Japan's benchmark indexes jumped about 1%, snapping a two-day decline amid a pullback in global bond yields from multi-year highs.
The Nikkei 225 Stock Average increased 1.1%, the TOPIX advanced 0.9%, and the yen strengthened to 158.69 against the U.S. dollar.
The U.S. Treasury Department said it plans to double its repurchase of 10-, 20-, and 30-year debt over the coming months after the 30-year Treasury yields surged to the highest levels since 2007.
The U.S. Treasury moved to calm the market after hyperscalers ramped up their issuance of investment-grade bonds, competing with the issuance of long-term Treasury notes.
Japan's 10-year government bond yields eased to 2.83% after hitting a 30-year high of 2.95% earlier this week.
Japan's Trade Deficit Widened In July; U.S. Oil Imports Soared Ninefold
Japan's trade deficit widened sharply in July as growth in imports overshadowed robust exports, driven by a strong demand for AI-related computer chips and automobiles.
Exports rose 23.2% to a record high of 11.5 trillion yen, and imports advanced 27.8% to 12.2 trillion yen, resulting in a wider trade deficit of 634.5 billion ($4 billion) yen compared to 156.3 billion yen a year ago.
The trade deficit expanded for the third consecutive month, and it was the largest since January as high energy prices lifted overall imports.
The yen's weakness inflated oil procurement costs and pushed imports to a record high, according to the preliminary data from the Ministry of Finance.
Goods exports increased for the 11th consecutive month, lifted by a weaker yen and robust demand for AI-related chips and semiconductor equipment from China and shipment of automobiles to the U.S., despite risks from supply chain disruptions linked to the Middle East conflict.
While Japan's overall imports of crude oil recovered to the level before the U.S. and Iran launched military strikes on Iran in February, the supply mix shifted away from the Middle East.
Oil imports from the Middle East declined 32.8% to 7.2 million kiloliters, but arrivals from the U.S. jumped ninefold to 4.4 KL in July, according to the government data.
The overall imports surged 88% to 1.41 trillion yen, as the import cost of crude oil jumped 78% to 116,380 yen per KL.
Exports to the U.S. advanced 22% to a record 2.1 trillion yen, and imports soared 58% to a record 1.81 trillion yen, shrinking the trade deficit for the eighth consecutive month.
Shipments to China advanced 25.8% to a record 2 trillion yen, and imports expanded 26.2% to a record 2.8 trillion yen, resulting in a trade deficit for the 64th consecutive month.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.1% to 66,065.17, and the broader TOPIX advanced 0.9% to 4,048.35.
Index heavy weights led gainers in Tokyo's trading on Thursday.
Toyota Motor advanced 4.5% to ¥3,074.0; Tokyo Electron decreased 1.5% to ¥53,810.0; Advantest Corp. edged up 1% to ¥35,360.0; and Kioxia Holdings decreased 6% to ¥52,960.0.
Nippon Yusen KK increased 0.6% to ¥6,761.0, Mitsui OSK Lines decreased 0.6% to ¥6,940.0, and Kawasaki Kisen Kaisha added 0.5% to ¥3,172.0.
Japan's Trade Deficit Expanded In July, Higher Oil Prices and Changing Supply Base Dominated Imports
Akira Ito
20 Aug, 2026
Tokyo
Japan's benchmark indexes jumped about 1%, snapping a two-day decline amid a pullback in global bond yields from multi-year highs.
The Nikkei 225 Stock Average increased 1.1%, the TOPIX advanced 0.9%, and the yen strengthened to 158.69 against the U.S. dollar.
The U.S. Treasury Department said it plans to double its repurchase of 10-, 20-, and 30-year debt over the coming months after the 30-year Treasury yields surged to the highest levels since 2007.
The U.S. Treasury moved to calm the market after hyperscalers ramped up their issuance of investment-grade bonds, competing with the issuance of long-term Treasury notes.
Japan's 10-year government bond yields eased to 2.83% after hitting a 30-year high of 2.95% earlier this week.
Japan's Trade Deficit Widened In July; U.S. Oil Imports Soared Ninefold
Japan's trade deficit widened sharply in July as growth in imports overshadowed robust exports, driven by a strong demand for AI-related computer chips and automobiles.
Exports rose 23.2% to a record high of 11.5 trillion yen, and imports advanced 27.8% to 12.2 trillion yen, resulting in a wider trade deficit of 634.5 billion ($4 billion) yen compared to 156.3 billion yen a year ago.
The trade deficit expanded for the third consecutive month, and it was the largest since January as high energy prices lifted overall imports.
The yen's weakness inflated oil procurement costs and pushed imports to a record high, according to the preliminary data from the Ministry of Finance.
Goods exports increased for the 11th consecutive month, lifted by a weaker yen and robust demand for AI-related chips and semiconductor equipment from China and shipment of automobiles to the U.S., despite risks from supply chain disruptions linked to the Middle East conflict.
While Japan's overall imports of crude oil recovered to the level before the U.S. and Iran launched military strikes on Iran in February, the supply mix shifted away from the Middle East.
Oil imports from the Middle East declined 32.8% to 7.2 million kiloliters, but arrivals from the U.S. jumped ninefold to 4.4 KL in July, according to the government data.
The overall imports surged 88% to 1.41 trillion yen, as the import cost of crude oil jumped 78% to 116,380 yen per KL.
Exports to the U.S. advanced 22% to a record 2.1 trillion yen, and imports soared 58% to a record 1.81 trillion yen, shrinking the trade deficit for the eighth consecutive month.
Shipments to China advanced 25.8% to a record 2 trillion yen, and imports expanded 26.2% to a record 2.8 trillion yen, resulting in a trade deficit for the 64th consecutive month.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.1% to 66,065.17, and the broader TOPIX advanced 0.9% to 4,048.35.
Index heavy weights led gainers in Tokyo's trading on Thursday.
Toyota Motor advanced 4.5% to ¥3,074.0; Tokyo Electron decreased 1.5% to ¥53,810.0; Advantest Corp. edged up 1% to ¥35,360.0; and Kioxia Holdings decreased 6% to ¥52,960.0.
Nippon Yusen KK increased 0.6% to ¥6,761.0, Mitsui OSK Lines decreased 0.6% to ¥6,940.0, and Kawasaki Kisen Kaisha added 0.5% to ¥3,172.0.
PBoC Held Rates at Record Lows Reflecting Caution Over Middle East Tensions
Li Chen
20 Aug, 2026
Hong Kong
China's benchmark indexes rebounded from the previous session, and the central bank left its key lending rate unrevised.
The Hang Seng Index increased 1.1%, and the mainland-focused CSI 300 Index added 0.2% as investors awaited additional policy support.
The People's Bank of China held the one-year Loan Prime Rate at 3.0% and the five-year LPR rate at 3.5%, following through on the promises made last month.
The PBoC held its key lending rates, used as a benchmark for consumer loans and residential mortgages, at record lows after a string of weak economic indicators for July.
The central bank held rates at record lows for fifteen consecutive months, supporting economic activities in the face of elevated geopolitical tensions in the Middle East.
China's rapidly cooling economic activities are signaled by fixed-asset investment, retail sales, industrial production, the jobless rate, and new home prices, all amid weakening domestic demand growth.
The National People's Congress Standing Committee is scheduled on August 25-28 in Beijing for further policy decisions.
China Indexes and Stocks
The Hang Seng Index increased 1.1% to 25,771.32, and the mainland-focused CSI 300 Index added 0.2% to 4,598.14.
AI- and semiconductor-linked stocks rebounded in Shanghai and Shenzhen.
Zhongji Innolight decreased 1.6% to HK $1,082.00; Eoptolink Technology increased 0.7% to ¥414.36; NAURA Technology edged up 0.8% to ¥718.73; and Alibaba Group Holding increased 2.4% to HK $127.20.
PBoC Held Rates at Record Lows Reflecting Caution Over Middle East Tensions
Li Chen
20 Aug, 2026
Hong Kong
China's benchmark indexes rebounded from the previous session, and the central bank left its key lending rate unrevised.
The Hang Seng Index increased 1.1%, and the mainland-focused CSI 300 Index added 0.2% as investors awaited additional policy support.
The People's Bank of China held the one-year Loan Prime Rate at 3.0% and the five-year LPR rate at 3.5%, following through on the promises made last month.
The PBoC held its key lending rates, used as a benchmark for consumer loans and residential mortgages, at record lows after a string of weak economic indicators for July.
The central bank held rates at record lows for fifteen consecutive months, supporting economic activities in the face of elevated geopolitical tensions in the Middle East.
China's rapidly cooling economic activities are signaled by fixed-asset investment, retail sales, industrial production, the jobless rate, and new home prices, all amid weakening domestic demand growth.
The National People's Congress Standing Committee is scheduled on August 25-28 in Beijing for further policy decisions.
China Indexes and Stocks
The Hang Seng Index increased 1.1% to 25,771.32, and the mainland-focused CSI 300 Index added 0.2% to 4,598.14.
AI- and semiconductor-linked stocks rebounded in Shanghai and Shenzhen.
Zhongji Innolight decreased 1.6% to HK $1,082.00; Eoptolink Technology increased 0.7% to ¥414.36; NAURA Technology edged up 0.8% to ¥718.73; and Alibaba Group Holding increased 2.4% to HK $127.20.