China Markets Reopen Amid AI Optimism and Consumer Caution

China's markets resumed trading with a mix of AI-driven Optimism and signs of weak consumer spending. Holiday data revealed households prioritizing budget-friendly travel options, with box office revenues underperforming. This spending restraint contrasts sharply with surging demand for AI talent, which continues to propel global tech stocks to record highs.

Chinese traders are scrutinizing potential policy shifts ahead of the Communist Party's mid-October meeting, where five-year plans will be formulated. The offshore yuan showed modest declines during the market closure, while Hong Kong-listed mainland stocks dipped 0.3%.

A potential November meeting between Presidents Xi and TRUMP at the APEC summit could reignite tariff discussions. "The early tourism data disappointed," noted Xin-Yao Ng of Aberdeen Investments, predicting persistent softness in consumption metrics.