China and Hong Kong stocks advanced on Monday, led by technology shares as semiconductor companies gained following strong earnings, while consumer and liquor stocks weakened ahead of key economic data due later in the day, Reuters reported.
At the midday break, the Shanghai Composite was up 0.8% at 3,960.19, while the blue-chip CSI 300 also gained 0.8%. Technology stocks outperformed, with the ChiNext Composite rising 1.3% and Shanghai’s STAR 50 index climbing 3%.
The CSI Semiconductor Index jumped 4%, while the AI Index gained 1.5%. Memory chipmaker CXMT surged 9%, while Shenzhen China Micro Semiconductor rose 15% to a one-month high after reporting nearly doubled first-half profit.
Gains were capped by weakness in consumer-related stocks. The CSI Liquor Index fell 3.3%, with heavyweight Kweichow Moutai declining 4.2% after reporting a drop in profit. The consumer staples sector also fell 2.8%.
Investors were awaiting a batch of economic data that could provide fresh clues about the health of China’s economy. The figures come after July bank lending data released late last week showed a record contraction, highlighting weak credit demand.
China’s industrial output was expected to rise 4.8% year-on-year in July, slowing from 5.3% in June, while retail sales were forecast to grow 1.5%, improving from the previous month’s 1.0% increase. Analysts at Nanhua Futures said the data would offer a direct test of the strength of domestic demand.
The focus could increasingly shift toward actual corporate earnings, potentially keeping markets range-bound while encouraging rotation between sectors, the analysts said.
In Hong Kong, the Hang Seng Index rose 1.6% to 25,521.99, while the Hang Seng Tech Index gained 2%.
Across the region, Asian shares traded largely sideways as investors monitored oil prices, which edged higher after U.S.-Iran peace talks stalled. Tensions remained elevated after Iran called on the United States to accept defeat, while U.S. President Donald Trump warned of continued high fuel prices amid the ongoing conflict, Reuters reported.
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