Hong Kong stocks sustain 3-year-high level as headway on trade talks spurs optimism
stocks to the highest level in
more than three and a half years continued on Wednesday, as the US clinched a trade deal with Japan and scheduled a fresh round of talks with China next week, reducing concerns about trade conflicts damaging the global economy.
The Hang Seng Index rose 0.6 per cent to 25,288.24 as of 10.06am local time, on track for the highest close since November 18, 2021. The Hang Seng Tech Index gained 0.7 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both added 0.4 per cent.
China Life Insurance rallied 5.5 per cent to HK$22.10, and Baidu added 3.9 per cent to HK$91.30. Wuxi Biologics advanced 4.8 per cent to HK$29.35, and affiliate Wuxi AppTec rose 2.5 per cent to HK$96.25.
In a breakthrough in tariff negotiations with a key trading partner, President Donald Trump said on Tuesday that the US and Japan had struck a trade deal that would impose a 15 per cent tariff on imports from the Asian country. The deal also included US$550 billion of Japanese investments in America, he said.
Meanwhile, Treasury Secretary Scott Bessent said on Fox Business that he would meet his Chinese counterparts in Stockholm next week for a third round of trade talks. A 90-day tariff pause between China and the US expires on August 12.
Other major Asian markets mostly traded higher. Japan's Nikkei 225 climbed 2.6 per cent and Australia's S&P/ASX 200 added 0.6 per cent, while South Korea's Kospi retreated 0.2 per cent.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
an hour ago
- South China Morning Post
China's next-generation nuclear plans take step forward with fast gigawatt reactor design
China's state-owned nuclear power firm has unveiled the design for an advanced nuclear reactor that could mark a 'crucial step' in the country's plans to develop next-generation nuclear energy Named the CFR-1000, it will be China's first commercial fourth-generation gigawatt-level fast neutron reactor. The facility is now awaiting approval and expected to become operational after 2030. Other major nuclear powers, including Russia and the United States, are also working on advanced reactors with the aim of developing a more fuel-efficient source of power. The China National Nuclear Corporation (CNNC) told a symposium on advanced nuclear energy held on Tuesday in Fuzhou that the preliminary design of the reactor – which has a maximum output capacity of up to 1.2 gigawatts of electricity – had been completed. The event in the capital of southeastern Fujian province – where China has built a demonstration reactor – was attended by representatives from the China Atomic Energy Authority and National Energy Administration.
South China Morning Post
3 hours ago
- South China Morning Post
China's quant hedge funds stock up on talent – at US expense – to fuel expansion, AI use
Yuan Yu, founder of Shanghai-based quantitative hedge fund Mingshi, recognised an opportunity when several intern prospects studying in the US said they were struggling to complete their PhDs amid university funding cuts and stricter visa policies under President Donald Trump. 'They told us that their supervisor's funding had been cut, so they couldn't continue their studies,' said Yuan, whose investment firm manages US$2.5 billion in assets. 'They felt lost and didn't know what to do. This prompted us to consider extending our internship offers to full-time job offers.' By seizing the chance to snap up the candidates, Mingshi echoed a larger trend in China's rapidly evolving quant hedge fund sector. The US upheaval in academia – and the government's antipathy towards foreign students – is helping such funds secure the brain power that they will need to harness China's breakthroughs in artificial intelligence (AI) and fuel their expansion beyond the domestic market. Companies like Mingshi often compete against local rivals and larger, more established global giants for the world's top scientists and engineers, many of whom would have stayed in the US in the past. 'We are hungry for top talent,' Yuan said. 'In the past two to three years, we have been offering salaries that are higher than some of the top US firms.' The sector has been growing rapidly. The yuan-denominated market is now the world's second largest, with a combined capitalisation of more than US$11 trillion, feeding demand for financial products aimed at wealth preservation or hedging. Quant products managed by domestic hedge fund firms totalled 837 billion yuan (US$117 billion) at the end of 2024, with 768 billion yuan invested in stocks, according to Citic Securities. Such products from mutual-fund firms, mostly index-reinforcing offerings, held 295 billion yuan, it said.
South China Morning Post
3 hours ago
- South China Morning Post
In Trump's tariff deals with Southeast Asia, will there be any winners?
Now that Donald Trump's arbitrary July 9 deadline for negotiations on 'reciprocal' tariffs has come and gone, what are the implications for Southeast Asia? To date, Vietnam, Indonesia and the Philippines are the only countries in the region to have secured so-called deals. Other countries are left with the previously announced April tariffs intact, although the negotiating deadline has been extended for three weeks to August 1. As things stand, there remain few winners in Southeast Asia in the ongoing saga. Details on the agreement with Vietnam are sparse, but it seems Hanoi has managed to get its initial 'reciprocal' tariff rate of 46 per cent reduced to 20 per cent. A 40 per cent tariff will be applied on transshipped products – without an exact definition of exactly what constitutes 'transshipment'. Trump posted on social media that Vietnam had granted the US 'TOTAL ACCESS' to its market, which seems to amount to a duty waiver on US products entering Vietnam. An artisan works on a pair of leather boots in Indonesia. Indonesian goods entering the US will face a 19 per cent tariff. Photo: AFP
