HK stocks end the day on strong note amid tech hopes
HK stocks end the day on strong note amid tech hopes
The Hang Seng Index ended the day 532.38 points higher at 23,640.65. File photo: RTHK
Stocks fluctuated on Wednesday, with investors struggling to track a strong day on Wall Street as euphoria over the China-US trade detente petered out.
In Hong Kong, the benchmark Hang Seng Index ended the day up 532.38 points, or 2.3 percent, higher at 23,640.65, thanks to healthy buying of Chinese tech firms ahead of earnings releases from market heavyweights Alibaba and Tencent.
Investors are hoping the reports will provide an idea about how the sector's two biggest firms are coping with the trade upheaval and uncertainty in the world's number two economy.
Tencent jumped 3 percent, while Alibaba and rival ecommerce giant JD.com put on even more.
The Hang Seng China Enterprises Index rose 2.47 percent to end at 8,593.07, and the Hang Seng Tech Index rose 2.13 percent to end at 5,381.78.
Across the border, the benchmark Shanghai Composite Index closed up 0.86 percent at 3,403.95.
The Shenzhen Component Index closed 0.64 percent higher at 10,354.22.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 1.01 percent to close at 2,083.14.
But while the days of breathtaking volatility seen through April appear to be over for now, analysts warned that more work was needed for Washington to reach tariff deals with countries and instill a sense of stability.
Data showing US inflation unexpectedly slowed last month provided some cheer, though observers pointed out that the real impact of Donald Trump's "Liberation Day" tolls will not likely be felt until May's readings.
There were also gains in Sydney, Seoul, Taipei, Mumbai and Jakarta but Singapore, Wellington, Manila and Bangkok fell. Tokyo ended down.
London, Paris and Frankfurt fell in morning trade.
Analysts said that while the China deal was welcome, investors were now bracing for the next developments in the US president's trade standoff with the world as countries look to strike deals with the White House to avert stiff tariffs.
"Remember it's an armistice not a peace treaty – and the tariffs are still at these levels worse than we had before," Neil Wilson at Saxo Markets said.
"Let's be honest, the market knows this script by heart: Trump escalates. Markets tumble. Back-channels open. China blinks. A deal gets made. Risk rallies," added Stephen Innes at SPI Asset Management.
"The fog has lifted – for now. Whether this cycle brings more sustainable upside or just sets up the next tantrum remains to be seen," he said. (AFP/Xinhua)
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