Hong Kong stocks close out April with 2.4pc gain, but analysts warn higher volatility likely in May
Rising US interest rates and the brewing trade war between the US and China are two major uncertainties
Hong Kong stocks closed sharply higher on Monday, ending April on positive note, but analysts were cautious about the market outlook in May, as rising US rates could spark faster-than-expected capital outflows and US-China trade uncertainty could hurt tech stocks.
The Hang Seng Index advanced 1.7 per cent, or 527.78 points to close at 30,808.45. For April, the index rose 2.4 per cent, snapping a two-month losing streak.
The Hang Seng China Enterprises Index, known as the H-share index, rose 2.2 per cent, or 264.81 points, to 12,331.39. It logged a monthly gain of 2.8 per cent in April.
The main board’s daily turnover decreased 4 per cent to HK$93.6 billion from the previous trading session. The Hong Kong market will be closed on Tuesday for Labour Day and reopen on Wednesday.
Mainland markets were shut on Monday and will also resume trading on Wednesday.
“Rising US treasury yields and the uncertainty surrounding US-China trade tensions will continue to keep the market under pressure,” said Ben Kwong, executive director for KGI Asia.