** China’s blue-chip CSI300 Index closed up 0.3%, while the Shanghai Composite Index gained 0.4%. Hong Kong benchmark Hang Seng was also up 0.7%.
** China’s factory output growth hit a six-month low in May, while retail sales picked up steam, offering temporary relief for the world’s second-largest economy amid a fragile truce in its trade war with the United States.
** The golden week holiday and discounts on e-commerce platforms starting in mid-May, ahead of the so-called “618” shopping event, should have helped to boost consumption during the month, said UBS analysts in a note.
** “But it remains to be seen whether the momentum can sustain, especially as the effects of the consumer trade-in program begin to fade and tariff outlook remains uncertain.”
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** Meanwhile, Iranian missiles struck Israel’s Tel Aviv and the port city of Haifa on Monday, destroying homes and limiting risk appetite in the onshore and offshore markets. ** Real estate shares traded onshore and offshore were up 2.4% and 2.0%, respectively, after a spokesperson for the National Bureau of Statistics said efforts to halt the sector’s decline were gaining traction. ** Onshore artificial intelligence shares rose 0.9%, while tech majors listed in Hong Kong were up 1.2%.
** New bank lending in China rose less than expected in May after hitting a nine-month low in April, as companies and consumers remained cautious about taking on more debt despite interest rate cuts and a trade truce between Beijing and Washington.
** The CSI300 Financial Index rose 1.2%.
