Hong Kong stocks near 2-month high on strong US jobs data, hopes of trade deal
Hong Kong
stocks extended a rally on Wednesday, taking the benchmark index close to a two-month high following upbeat US jobs data and hopes of a de-escalation in the US-China trade war.
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The Hang Seng Index rose 0.5 per cent to 23,624.41 at 10.13am local time, the highest since March 19. The Hang Seng Tech Index gained 0.6 per cent. On the mainland, the CSI 300 Index climbed 0.4 per cent and the Shanghai Composite Index added 0.2 per cent.
Chinese electric-vehicle (EV) makers advanced following the launch of a government programme to promote sales of green-energy cars in rural areas. Geely Automobile Holdings gained 3.3 per cent to HK$18.82, BYD advanced 2.1 per cent to HK$409 and Li Auto added 2.8 per cent to HK$119.60. Tencent Holdings climbed 1.5 per cent to HK$512.50 and Meituan rallied 2.3 per cent to HK$139.70.
Overnight gains on Wall Street pushed US benchmarks to within striking distance of their record highs reached earlier this year after a government report pointed to the continuing resilience of the labour market while also beating economists' estimates.
Investors were also keeping an eye on whether Chinese President Xi Jinping would talk to his US counterpart Donald Trump about a long-term trade deal. While the White House said the conversation would take place this week, Beijing had yet to confirm it.
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Other major Asia-Pacific markets traded higher. Japan's Nikkei 225 climbed 0.8 per cent and Australia's S&P/ASX 200 added 0.7 per cent. South Korea's Kospi jumped 2.4 per cent, as the election of a new president eased political uncertainty.
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