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China and Hong Kong stock prices rise ahead of Sino-US Trade Talks
China and Hong Kong shares edged up on Monday as rare-earths and technology sectors led gains, while investors awaited high-level U.S. China trade negotiations to be held in London. At midday, both the Shanghai Composite Index and China's blue chip CSI300 Index gained 0.2%. Hong Kong's Hang Seng index advanced by more than 1%, and it reclaimed its key level of 24,000 for the first time since March 21, 2015. During the morning session of trading, the yuan was unable to find a direction and traded last at 7,1872 dollars. The mood was positive, but cautious. U.S. officials and Chinese representatives are set to resume their trade negotiations later that day. The top U.S. officials, including Treasury Secretary Scott Bessent, and China's Vice Premier He Lifeng are meeting in London to discuss a trade dispute. The meeting comes after a rare call between Chinese President Xi Jinping, and U.S. president Donald Trump. Both sides accused each other of violating Geneva's consensus. Analysts at China Securities wrote in a report that they believe there could be positive outcomes as Trump has shown some positive signs. They added that any progress would offer some relief to the markets. The strategically-important rare earth sector, which is expected to be a key focus of the talks, led onshore gains on Monday, up 1.6%. Hong Kong's Hang Seng Tech Index rose 2.3%, reaching a new high of about three weeks. Since the "Liberation Day" of April 2, when Trump announced massive reciprocal tariffs, which threatened to upset the global trading order, Chinese stocks have struggled for direction. The blue-chip CSI300 Index has barely moved from its April 2 level. Hong Kong's Hang Seng Index, the benchmark index, gained about 3% in the same period. Both markets are lagging behind the global recovery. China's consumer price fell for the fourth consecutive month in May, while deflation among producers grew, as trade tensions and an extended housing slump weighed on the economy. (Reporting and editing by Rashmi aich in Hong Kong)
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China's rare Earth exports rose 23% in May, despite export restrictions
China's rare earths exports to the world in May rose 23% over the previous month, reaching their highest level in a full year. However, Beijing's export restrictions on certain critical minerals have halted sales overseas, causing shortages that are affecting global manufacturing. China's April restrictions on exports of several types of rare Earths and rare-earth magnets closed parts of the auto industry worldwide. The issue was also a major topic in the rare phone call between leaders of China and the United States last week. Exports of rare earths, all types, from the largest producer in the world were up by 23% compared to April. They now stand at 5,864.60 tonnes. This is the highest monthly number in the past year. The restrictions do not apply to all types of rare earths that China exports. The data released on Monday does not differentiate between them. A full picture of their impact will be revealed in a more comprehensive data release scheduled for June 20. Last month, data showed that magnet exports had fallen by half between April and May. Last week, several European auto part plants had to cease production. Semiconductor firms in the continent also warned that they would be forced to do so within weeks. Customs data revealed that in the first five month of 2025 the exports of the 17-mineral group rose slightly to 24,827 tonnes from 24,266.5 tons one year earlier. (Reporting and editing by Beijing Newsroom)
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China's coal imports in May fell 18% due to cheap domestic coal and renewable energy
China, the largest coal importer in the world, reduced its imports by 18% on an annual basis, according to customs data released Friday. Low-cost domestic coal eroded overseas purchases, while renewables slowed down coal-fired electricity generation. According to the General Administration of Customs, imports were 36.04 millions metric tons for the month, down from 43.82million tons in May 2024. This was the third consecutive month that China's imports of coal fell year-over-year. They had increased previously every month from November 2022. January and February were excluded because they are affected by Lunar New Year holidays. The data shows that coal imports for the first five month of this year were 188.7 metric tons. This is down from 204.9 metric tons a year ago. The domestic coal price has remained flat for the past four years, reducing profits. According to the Bohai-Rim Bay Thermal Coal Price Index, the average price of medium-grade coal in May was 632 dollars. The domestic coal production is also on the increase, with a 7% rise to 1,58 billion tons in the first four month of the year. China's thermal energy generation, which is mainly coal and a little natural gas, dropped 4% between January and April, while the generation of renewables captured the increase of 3% in demand for power during those four months. (Reporting and editing by Himani Sarkar; Colleen howe)
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Iron ore prices continue to fall as China's deflation persists
Iron ore futures prices fell on Monday as investors' sentiment was dampened by weak data from China, the top consumer. However, hopes for progress in trade negotiations between the two world's largest economies helped to limit losses. As of 0215 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading little changed. It was 707.5 yuan (98.45 dollars) per metric ton. The benchmark July Iron Ore at the Singapore Exchange fell 0.22% to $95.3 per ton. China's consumer price fell for the fourth consecutive month in May, and producer deflation reached its highest level in nearly two years. The economy is facing headwinds due to trade tensions and an extended housing downturn. Three top U.S. aides to President Donald Trump will meet their Chinese counterparts on Monday in London for talks that aim to resolve a trade conflict between the two superpowers, which has been causing global markets to be on edge. The temporary agreement reached by both countries on 12 May in Geneva did not address the broader issues straining bilateral relations. The market is therefore eager to know if a final agreement will be reached, which would ease pressure on global growth. Coking coal and coke were both mixed on the DCE. The benchmark steel prices on the Shanghai Futures Exchange are rangebound. The price of rebar, hot-rolled coil and wire rod were unchanged. Stainless steel was down by 0.47%. $1 = 7.1862 Chinese Yuan (Reporting and editing by Amy Lv, Lewis Jackson)
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Gold prices drop as US-China trade hopes ease demand for safe-havens
Gold prices declined on Monday as optimism over easing U.S.-China trade tensions dampened safe-haven demand, while a stronger-than-expected U.S. jobs report tempered expectations of interest rate cuts by the Federal Reserve. As of 0214 GMT, spot gold was down 0.4% at $3,298.12 per ounce. U.S. Gold Futures fell 0.9% to $3317.40. Three top aides to U.S. president Donald Trump will be meeting with their Chinese counterparts later that day in London to discuss the resolution of the trade dispute, which has been a source of tension for global markets. Short-term traders are not interested in taking aggressive long positions at this time, pending the outcome of U.S. China talks, said Kelvin Woong, a senior analyst for Asia Pacific, OANDA. Wong added that tariffs will not disappear but that talks could lower the baseline. The cost of doing business in America would remain high and the growing U.S. deficit could lead to a double-feedback loop, which would exacerbate inflationary pressures. Labor Department reported that the U.S. economy created 139,000 new jobs in May, exceeding analysts' expectations. The unemployment rate remained unchanged at 4.2%. The wage growth was higher than expected, reducing the chances of rate cuts. Investors have lowered their bets for rate cuts, and expect one in October. They are also waiting to see the U.S. CPI numbers due on Wednesday. Trump also said that the Fed would announce its decision soon on who would become the next chair. He added that a good Fed chair would lower interest rates. On Monday, Trump's ban on citizens from 12 countries entering the U.S. will take effect. In a low interest rate environment, non-yielding gold bullion is often seen as a safe haven during times of economic and geopolitical uncertainty. The price of palladium remained unchanged at $1,046.18. Platinum fell 0.5%, to $1,163.64, and spot silver remained at $35.97. (Reporting and editing by Sumana Nandy, Harikrishnan Nair and Anmol Choubey from Bengaluru)
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London copper prices little changed before US-China trade negotiations
London copper prices were largely unchanged Monday. The market was watching the U.S. - China trade talks that will be held later in the day in London. The U.S. Dollar held steady on Monday against all major currencies, as optimism over a positive U.S. jobs report was replaced by caution in advance of the discussions between the world's biggest economies. Three of Donald Trump's top advisers from the United States will meet their Chinese counterparts on Monday in London to settle a trade conflict that has been causing global markets to be on edge. By 0108 GMT, the three-month contract for copper on the LME had traded up $2 to $9,695 a metric ton. The Shanghai Futures Exchange's most traded copper contract fell 0.2%, to 78.630 yuan per ton ($10.9939.67). Yangshan copper premium is in high demand. Last Friday, the price of, which measures China's desire to import copper, dropped to $41 per ton, its lowest level in three months. Early May saw a peak of $103, the highest level since mid-December, 2023. Other London metals rose by 0.2%, with aluminium rising to $2.456.5 per ton. Lead gained 0.2%, to $1.982, while zinc climbed 0.2%, to $2.670. Nickel was up 0.3% at 122,460 Yuan. Lead gained 0.3% at 16,730 Yuan. Zinc fell 0.3% at 22,250 Yuan. Click or to see the top stories on metals, and other news. (Reporting is by Hongmei Li. Editing is by Harikrishnan Nair.)
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Dollar falls as Asian shares rise ahead of US-China discussions
The dollar lost some of its recent gains as Asian markets responded to the better than expected U.S. employment data, ahead of the London talks aimed at mending the trade rift between China and the United States. Wall Street stocks closed strongly higher on Friday, after the jobs data eased fears about the damage that President Donald Trump's unpredictable tax regime could cause to the world's largest economy. Gold and other safe-haven assets fell after steep sales. MSCI's broadest Asia-Pacific share index outside Japan rose 0.5% at the opening of trading on Monday. Hong Kong's Hang Seng Index soared by 1.3% and reached the 24,000 point level for the very first time since March 21, 2009. Japan's Nikkei stock index rose 0.9%. A standoff in Los Angeles, which led Trump to call in the California National Guard in order to quell protests against his immigration policies, also weighed on the sentiment. The dollar fell 0.3% to 144.39 yen, reducing its 0.9% rise on Friday. The euro was up by 0.2% at $1.1422. Washington and Beijing's top trade representatives are expected to meet to discuss critical minerals whose production is dominated largely by China. The talks follow a rare phone call between Trump and Chinese president Xi Jinping last week. Kyle Rodda is a senior analyst of Capital.com and he said that trade policy would remain the biggest macro-uncertainty. "Signs that the talks are moving forward could give the markets a boost to start the week." Trump announced in a post on social media that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, as well as Trade Representative Jamieson Greer, will represent Washington at talks with China. China's Foreign Ministry announced Vice Premier He Lifeng would be in Britain to attend the first meeting of China-U.S. Economic and Trade Consultative Mechanism. Data released on Friday showed that U.S. employers created 139,000 new jobs in May. This is less than the 147,000 added in April but more than the 130,000 predicted by an economist poll. The focus now shifts to Wednesday's inflation data, which will influence expectations about the timing of rate cuts from the Federal Reserve. Jeff Ng of SMBC, the Head of Asia Macro Strategy, stated that the markets are experiencing "mixed fortunes". They must balance the optimism about trade and the U.S. economic situation against the possibility of social unrest in California. Ng added that markets might not have priced in much of a breakthrough from the trade talks. In the meantime, Ng said, "We are aware that there are protests taking place in L.A. in the U.S., and the National Guard has also been sent in. So we also have to keep an eye on event risk." Spot gold dropped 0.2% to $3.303.19 per ounce. U.S. crude oil was barely changed at $64.56 per barrel following a two-day rise.
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China and Hong Kong stock prices rise ahead of Sino-US Trade Talks
China and Hong Kong shares edged up on Monday as rare-earths and technology sectors led gains, while investors awaited high-level U.S. China trade negotiations to be held in London. China's blue chip CSI300 Index rose 0.3% in the early trades while the Shanghai Composite Index gained 0.4 percent. Hong Kong's benchmark Hang Seng rose more than 1%, and it regained the critical 24,000 level for the first time since March 21, 2009. The mood was cautiously optimistic, as the U.S. will resume their trade talks with China later that day. The top U.S. officials, including Treasury Secretary Scott Bessent, and China's Vice Premier He Lifeng are meeting in London to discuss a trade dispute. The meeting comes after a rare call between U.S. president Donald Trump and Chinese leader Xi Jinping on Thursday. This was in response to weeks of brewing tensions over trade and a dispute about critical minerals. Analysts at China Securities wrote in a report that they believe there could be positive outcomes as Trump has shown some positive signs. They added that any progress would offer some relief to the markets. The strategically-important rare earth sector, which is expected to be a key focus of the talks, led onshore gains on Monday, up 0.8%. Hong Kong's Hang Seng Tech Index rose 2%, reaching a three-week high. Since the "Liberation Day" of April 2, when Trump announced massive reciprocal tariffs, which threatened to upset the global trading order, Chinese stocks have struggled for direction. The blue-chip CSI300 Index has barely moved from its April 2 level. Hong Kong's Hang Seng Index, the benchmark index, gained about 2% in the same period. Both markets are lagging behind the global recovery. China's consumer price fell for the fourth consecutive month in May, while deflation among producers grew, as trade tensions and an extended housing slump weighed on the economy. (Reporting and editing by Rashmi aich in Hong Kong)
Oil prices rise ahead of US-China Trade Talks
Investors waited in London for the U.S. China trade talks scheduled later that day. Oil prices were able to hold onto their gains from last week.
Brent crude futures were unchanged at $66.47 per barrel at 0008 GMT. U.S. West Texas Intermediate Crude was trading at $64.59.
Prices rose as the prospect of a U.S. China trade deal was raised. Three of Donald Trump's most senior aides will meet their counterparts on Monday in London for the first U.S. China economic and trade consultative mechanism meeting.
The announcement came after a rare phone call on Thursday between top leaders of the two countries. Both were under pressure to calm down tensions, as China's export restrictions on rare earths are disrupting global supply chains. The news prompted oil prices to post their first weekly increase in three weeks.
The fact that the unemployment rate in the United States remained unchanged in May seemed to increase the chances of a Federal Reserve cut. This would support last week's gains. On Monday, China's inflation data will provide a read on the domestic demand of the world's biggest crude importer.
After OPEC+ announced a major increase in production for July, on May 31, the economic data and prospects of a potential trade agreement that could boost economic growth and demand for oil overshadowed concerns about an increased OPEC+ output.
HSBC's research note published on Friday said that it expects OPEC+ will accelerate its supply increases in August and Septembre, raising downside risks for the bank's forecast of $65 per barrel Brent from the fourth quarter 2025.
Capital Economics' researchers believe that this "new, faster pace (of OPEC+) rise in production is here to remain". (Reporting and editing by Colleen Waye; Himani Sarkar, Himani Sarkar).
(source: Reuters)