Sino-US talks hope fuels strong rise for HK stocks

RTHK

3 days ago

Sino-US talks hope fuels strong rise for HK stocks
The Hang Seng Index finished strongly up 388.89 points, or 1.63 percent, for the day at 24,181.43. File photo: RTHK
Asian stocks rallied on Monday on hopes that a fresh round of China-US trade talks later in the day will ease tensions between the economic superpowers, while investors were also cheered by forecast-topping US jobs data.
In Hong Kong, the benchmark Hang Seng Index ended strongly up 388.89 points, or 1.63 percent, for the day at 24,181.43.
Across the border, Chinese stocks closed higher, with the benchmark Shanghai Composite Index up 0.43 percent to 3,399.77.
The Shenzhen Component Index closed 0.65 percent higher at 10,250.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 1.07 percent to close at 2,061.29.
Regional gains extended a run-up across global markets in recent weeks as fears about US President Donald Trump's tariff blitz subside and countries make deals with Washington.
All eyes are on London, where top officials from China and the United States are due to meet for more negotiations aimed at preserving a fragile truce agreed last month that slashed eye-watering tit-for-tat levies.
The talks come days after President Xi Jinping and Trump held their first publicly announced telephone talks since the Republican returned to the White House.
They were helped by news that Beijing had on Saturday approved some applications for rare-earth exports, while aviation giant Boeing will start sending commercial jets to China for the first time since April.
The impact of the trade row was highlighted on Monday in data showing Chinese exports to the United States sank more than 34 percent year on year in May and almost 13 percent from the previous month.
However, shipments to other regions including the European Union and the Association of Southeast Asian Nations surged.
Separate data showed Chinese consumer prices fell in May for the fourth straight month.
Optimism that the two sides will make a breakthrough boosted other markets such as Tokyo, Seoul, Singapore, Mumbai, Bangkok and Manila also advanced.
In Japan, the Nikkei share average advanced ahead of Sino-US trade talks in London later in the day, with investors watching for any easing of restrictions on semiconductor shipments.
The Nikkei rose 0.92 percent to 38,088.57 at the close.
The broader Topix rose 0.58 percent. A sub-index of growth shares rallied 0.79 percent, outpacing a 0.38 percent rise in value shares.
Chip-testing equipment maker and Nvidia supplier Advantest was the Nikkei's biggest gainer in index-point terms with a 4.86 percent climb.
Another chip company, Socionext, soared 7.34 percent to be the top performer in percentage terms. (Reuters/Xinhua)