Hong Kong and China stocks posted weekly gains on Friday, as traders unwound safe asset trades and shifted to riskier ones amid defused geopolitical tensions in the Middle East and optimism about China’s growth outlook. The Hang Seng Index rose 0.7 per cent this week and the Shanghai Composite Index added 0.3 per cent. Both gauges posted a sixth consecutive week of gains. US stock gauges all rose to records in overnight trading and bullion futures declined for a third day, as investors switched their focus to economic fundamentals from the buzz around the US and Iran’s military conflict. The US non-farm payrolls are due over the weekend, while China is expected to release its full-year gross domestic product data late next week. “With the market backdrop remaining supportive, namely an improving macro, central bank easing and receding tail risks around [trade and the Middle East], the path of least resistance remains up,” said Stephen Innes, a strategist at AxiTrader. Stocks Blog: Markets post sixth week of gains, Shanghai Composite dips on Friday The Hang Seng Index added 0.3 per cent to 28,638.20 at the close on Friday. The Shanghai Composite dipped 0.1 per cent to 3,092.29, as Chinese suppliers of Tesla declined on concerns that they had made excessive gains recently. Sunny Optical Technology Group rose 0.7 per cent to HK$142, its highest close since December 19. Its mobile phone lens set shipments increased 68 per cent from a year ago last month, while its camera module shipments jumped 79 per cent, the company said in an exchange filing. Sunac China Holdings fell 4.4 per cent to HK$44.60. The Chinese property developer said it plans to sell shares at a discount in a placement. The offer price of HK$42.80 implies an 8.3 per cent discount to Sunac China’s close on Thursday. The developer plans to raise HK$8 billion (US$1.03 billion) selling 186.9 million shares. US-Iran tensions not likely to stall equities markets in 2020 In mainland China, Tianjin Motor Dies paced the declines among Tesla’s Chinese suppliers. Tianjing Motor tumbled by the 10 per cent daily limit to 5.91 yuan, paring its gain to 60 per cent over the past month. Ningbo Yidao Investment Management, which holds a 5.3 per cent interest in the company, plans to sell no more than a 1 per cent stake in the following 90 days, according to an exchange statement. Jiangsu Alcha Aluminum plunged 10 per cent to 4.12 yuan and Aotecar New Energy Technology slumped 7.4 per cent to 2.27 yuan. The two stocks have risen by at least 35 per cent over the past month. Shares of Tesla suppliers had risen on optimism that a price cut in a major model by the US electric-car maker in the Chinese market will boost sales and benefit local car parts makers. Midea Group, China’s biggest maker of household appliances, added 0.9 per cent and rose to a record 59.99 yuan. Foreign traders held a combined 27.71 stake in the company as of Thursday, nearing the 28 per cent limit in a single stock imposed by Chinese regulators, according to the latest data provided by the Shenzhen exchange. Exceeding the cap will lead to suspension of overseas buying of the stock.