{"id":64156,"date":"2026-07-02T22:08:20","date_gmt":"2026-07-03T02:08:20","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-rally-on-strong-vietnam-growth-and-resilient-china-services-data\/64156\/"},"modified":"2026-07-02T22:08:20","modified_gmt":"2026-07-03T02:08:20","slug":"asian-markets-rally-on-strong-vietnam-growth-and-resilient-china-services-data","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-rally-on-strong-vietnam-growth-and-resilient-china-services-data\/64156\/","title":{"rendered":"Asian Markets Rally on Strong Vietnam Growth and Resilient China Services Data"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Vietnam\u2019s economy accelerated to 8.39% growth<\/strong> in the second quarter of 2026, significantly outpacing the previous quarter&#39;s 7.83% expansion.<\/li>\n<li><strong>China\u2019s services sector remains in expansion<\/strong> with the RatingDog Services PMI at <strong>54.1<\/strong>, supported by the fastest growth in export orders in 20 months.<\/li>\n<li><strong>Foreign investors offloaded \u00a53.12 trillion ($19.2 billion)<\/strong> in Japanese government bonds (JGBs) in June, the largest monthly exodus since early 2023.<\/li>\n<li><strong>Hong Kong\u2019s Hang Seng Tech Index rose 2%<\/strong> in early trade, led by major gains in heavyweights like Tencent (<a href=\"\/stock\/700\">700<\/a>) and Alibaba (<a href=\"\/stock\/9988\">9988<\/a>).<\/li>\n<li><strong>Fitch Ratings revised the outlook for Hong Kong\u2019s banking sector to &quot;neutral,&quot;<\/strong> citing signs that commercial real estate (CRE) risks are bottoming out.<\/li>\n<\/ul>\n<p>Vietnam\u2019s economy delivered a standout performance in the second quarter of 2026, with <strong>GDP expanding 8.39%<\/strong> on a year-on-year basis. The General Statistics Office reported that this growth was driven by robust electronics manufacturing and a surge in the services sector, which contributed over <strong>50% of the economy&#39;s gross value added<\/strong>. The Vietnamese government has subsequently set an ambitious <strong>11.9% growth target<\/strong> for the second half of the year to push for double-digit annual expansion.<\/p>\n<p>In China, private-sector data indicated continued resilience in the services industry despite a slight cooling from May. The <strong>RatingDog China General Services PMI<\/strong> registered <strong>54.1 in June<\/strong>, down marginally from 54.4 but comfortably above the 50-point threshold separating expansion from contraction. Notably, <strong>new export business<\/strong> rose at its fastest pace since October 2024, suggesting that international demand is providing a critical buffer against softer domestic consumption.<\/p>\n<p>Japan&#39;s bond market faced significant volatility as the Ministry of Finance revealed that <strong>overseas investors sold \u00a53.12 trillion<\/strong> of government debt in June. This massive outflow, the largest in over three years, has intensified pressure on yields as global capital reassesses exposure to the yen. Despite the selling pressure, the yield on the <strong>20-year JGB declined 1.5 basis points to 3.750%<\/strong> in early Friday trading, reflecting complex positioning ahead of upcoming 30-year auctions.<\/p>\n<p>Hong Kong equity markets saw a broad-based rally, particularly within the technology and biotech sectors. The <strong>Hang Seng Tech Index climbed 2%<\/strong>, while the <strong>Hang Seng Biotech Index surged 4%<\/strong> in early trade, buoyed by improved sentiment and strong earnings expectations. Major tech players like Meituan (<a href=\"\/stock\/3690\">3690<\/a>) and Xiaomi Corporation (<a href=\"\/stock\/1810\">1810<\/a>) saw significant interest as investors rotated back into high-growth assets following a period of underperformance.<\/p>\n<p>The banking sector in Hong Kong received a boost from <strong>Fitch Ratings<\/strong>, which noted that risks stemming from <strong>commercial real estate (CRE)<\/strong> are likely to moderate in the second half of 2026. While credit costs for highly exposed lenders like Hang Seng Bank (<a href=\"\/stock\/11\">11<\/a>) and Bank of East Asia (<a href=\"\/stock\/23\">23<\/a>) may remain elevated, the agency believes the majority of weak loans have already been recognized. This stabilization, combined with a <strong>buoyant IPO market<\/strong>, supports a more optimistic view of the region&#39;s financial stability.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Vietnam\u2019s economy accelerated to 8.39% growth in the second quarter of 2026, significantly outpacing the previous quarter&#39;s 7.83% 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