By Summer Zhen

HONG KONG, June 12 (Reuters) - China and Hong Kong stocks rebounded on Friday with the Shanghai Composite on track for its first weekly gain in a month, tracking broad gains in Asian markets after the United States cancelled its planned attack on Iran.

** By the lunch break, both China's blue-chip CSI300 Index .CSI300 and the Shanghai Composite Index .SSEC climbed 1.5%.

** Hong Kong benchmark Hang Seng .HSI rose 2%. Hang Seng Tech .HSTECH advanced 1.7%

** Gold-related stocks .CSI931238, rare earth .CSI930598 and defence sector .CSI399959 led the gains, up 7.3%, 4.4% and 4%, respectively, by midday.

** U.S. President Donald Trump on Thursday said the United States and Iran could sign a peace deal as soon as this weekend that ​would reopen the Strait of Hormuz to shipping, but Iran said it had not reached a final decision on an agreement.

** A-share listed commercial space-related stocks surged on Friday, boosted by momentum from SpaceX’s upcoming listing. AVIC Chengdu Aircraft 302132.SZ jumped 11%. Chengdu Spaceon Electronics 002935.SZ gained 10%.

** Despite optimism surrounding AI-related trades, investors expect broad Chinese markets to remain volatile in the near term due to concerns about consumer demand and regulatory uncertainties.

** "There continues to be some reluctance on the part of foreign investors to purchase Chinese assets amidst the evolution of the regulatory environment in China," Kristina Hooper, chief market strategist at Man Group, said in the asset manager's midyear outlook.

** The smaller Shenzhen index .SZSC was up 1.98%, the start-up board ChiNext Composite index .CNT was higher by 1.27% and Shanghai's tech-focused STAR50 index .STAR50 was up 1.15%​.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was up 3.88%.