China stocks jump to three-month high, HK rallies
HONG KONG: China and Hong Kong stocks rose on Tuesday, joining a broader rally across Asia, as global risk appetite improved following US President Donald Trump's announcement of a ceasefire between Israel and Iran.
At market close, the Shanghai Composite Index gained 1.2% to 3,420.57, the highest level since March 20. The blue-chip CSI300 Index also climbed 1.2% to a one-month high. Hong Kong benchmark Hang Seng was up 2.1%, the biggest single-day gain in over five weeks.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 2.3%, while Japan's Nikkei index was up 1.1%.
Markets reacted positively to the news that US President Donald Trump announced a complete ceasefire between Israel and Iran, potentially ending the 12-day war that saw millions flee Tehran and prompted fears of further escalation in the war-torn region.
Risk sentiment in China markets probably won't get much worse from here, and further dips on Middle East tensions might signal a new round of buying opportunities, analysts at Bank of China (International) Securities said in a note.
On Tuesday, the CSI AI index led onshore markets with a 2.2% rally, while the financial sector sub-index climbed 1.4% and the rare earth sector added 1.8%.
Tech firms and car makers led gains in Hong Kong, with the Hang Seng Automobile Index adding over 3% and the Hang Seng Tech Index climbing 2.1%.
China's yuan also strengthened to its highest level in nearly two weeks against a broadly weaker US dollar on Tuesday.
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