Hang Seng Index rises to highest level in six weeks as trade war angst eases
- China customs agency exempts tariff on 16 products from first round of additional tariffs on US imports
- In China, consumer stables drop as trade war fears lessen
The Hang Seng Index rose 1.8 per cent to close at 27,159.06, its highest level since August 1, as investors’ outlook on the US China trade war improved, prompting them to snap up banking and property stocks.
The gains in Hong Kong on Wednesday contrasted with the CSI 300, which tracks blue chips listed on Shenzhen and Shanghai bourse. It closed down 0.7 per cent at 3,930.1, while the Shanghai Composite Index finished down 0.4 per cent at 3,008.81.
China on Wednesday unveiled a list of 16 types of products that will be exempt from the first round of additional tariffs on US imports as the two sides prepare for trade talks in Washington next month.
The exemption will take effect next Tuesday and remain in place until September 16, 2020, the Customs Tariff Commission of the State Council said in a statement.
Helping to sooth investors’ concerns further, Hu Xijin, editor in chief of Global Times, a nationalistic state-run newspaper, tweeted that China would announce “important measures to ease the negative impact of the trade war”, adding that these will benefit “some companies from both China and the US”.
