US-China trade deal, rate-cut bets power Hang Seng to best week in 4 months
Hong Kong
stocks were headed for the biggest weekly gain in almost four months after China and the US clinched a tentative agreement on export
tariffs , while traders stepped up bets on US interest rate cuts.
The Hang Seng Index rose 0.4 per cent to 24,423.36 at 10.20am local time on Friday. The city's stock benchmark has risen almost 4 per cent since Monday, the most since the opening week of March.
The Hang Seng Tech Index climbed 0.3 per cent, bringing the rally this week to 4.5 per cent. On the mainland, the CSI 300 Index climbed 0.6 per cent and the Shanghai Composite Index added 0.4 per cent.
Xiaomi surged 5.5 per cent to HK$60 after unveiling the price of its YU7 SUV, a rival to Tesla's Model Y. Gold producer Zijin Mining jumped 5.5 per cent to HK$20.75 and apparel maker Shenzhou gained 3.3 per cent to HK$55.80. Alibaba Group rose 0.4 per cent to HK$112.60 while China's top chipmaker SMIC gained 1.5 per cent to HK$45.15.
The US and China reached a 'framework' agreement on tariffs after two rounds of talks in Geneva and London, including normalising rare earth exports, the White House said. President Donald Trump said the US had signed a trade deal with Beijing a day earlier, offering no further details.
Meanwhile, several Fed officials favoured cutting borrowing costs in the coming months amid signs of cooling inflation. Rates traders are pricing in two cuts this year, with odds rising to 93 per cent for the Fed's September meeting, from 64 per cent a week ago, according to CME Group.
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