Hong Kong stocks hold at 3-year high on hope of trade agreement between US and EU
stocks steadied on Thursday, with the benchmark index hovering at its highest point in three and a half years as investors bet against a global trade war thanks to apparent progress towards a tariff deal between the US and European Union.
The Hang Seng Index rose 0.2 per cent to 25,591.16 as of 10.11am local time. The Hang Seng Tech Index gained 0.1 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both climbed 0.2 per cent.
Car dealer Zhongsheng Group Holdings advanced 2.9 per cent to HK$14.06, and ZTO Express advanced 2.4 per cent to HK$155.70. Semiconductor Manufacturing International rallied 2 per cent to HK$49.70, and China Life Insurance gained 3.1 per cent to HK$22.30.
The gains in Hong Kong stocks took cues from US and Asian equities after reports emerged that the European Union would accept a 15 per cent tariff on its exports to the US. That marked another breakthrough in President Donald Trump's tariff policy after cutting a deal with Japan this week. Stocks cheered about the likely outcome, with the S&P 500 index notching a fresh record high. Investors had expected the two sides to be deadlocked on a 30 per cent rate.
Other major Asian markets were mixed. Japan's Nikkei 225 climbed 1.9 per cent, South Korea's Kospi rose 0.7 per cent and Australia's S&P/ASX 200 slipped 0.1 per cent.
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