Hong Kong and China stocks rose Thursday on increased optimism the world’s two largest economies will agree on a phase-one trade deal, despite tensions over what Beijing sees as interference by the US in its domestic affairs. The Hang Seng Index rose 0.6 per cent to 26,217.04, with 45 of the 50 constituent members posting gains, including Chinese internet giant Tencent, which climbed 0.4 per cent to HK$330. Meanwhile, e-commerce giant Alibaba rose 1.8 per cent to HK$192.40, snapping a four-day losing streak. (Alibaba owns the South China Morning Post .) The Shanghai Composite Index gained 0.7 per cent to 2,899.47, while the Shenzhen Composite Index advanced 1.1 per cent to 9,799.07. But traders remain cautious, said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai, despite a report by Bloomberg citing knowledgeable sources that the US and China are moving closer to a deal, and that tensions over human rights legislation in the US are not threatening to derail progress. Trade war: China, US moving closer to deal despite Hong Kong and Xinjiang tensions, reports Bloomberg “The market remains highly uncertain. As global trade relationships are getting worse, the 2020 world economy is under pressure, not to mention Hong Kong just published very bad retail figures a few days ago,” Wen said. “The market is still waiting for further information on the trade deal,” Wen added. Stocks linked to gold, a safe haven asset, fell in both Hong Kong and the mainland, after large gains posted Wednesday when US President Donald Trump signalled he was in no rush to complete a trade deal and that an agreement might not come until after next November’s elections. China’s biggest IPO in four years faces a woeful start ahead of debut as a record number of investors decline their allotments In China, Churin Group fell 3.6 per cent, Lao Feng Xiang declined 2.3 per cent, and Zijin Mining fell 1.9 per cent. Among Hong Kong-listed gold stocks, Zhaojin Mining tumbled 5.9 per cent, Shandong Gold Mining fell 2.6 per cent, and Bay Area Gold dropped 5.3 per cent. Also in Hong Kong, the top performers of the Hang Seng benchmark were AAC Technologies Holdings, which shot up 6.7 per cent to HK$56.85, and Sunny Optical, which jumped 5.2 per cent to HK$131.20. Tech stocks rose in Hong Kong and the mainland rose after Huawei announced that it plans to sue the Federal Communications Commission (FCC) for its policy of denying subsidies to American companies that use Huawei’s equipment. Meanwhile, China food delivery titan Meituan Dianping advanced 1.7 per cent to HK$102.20. In mainland markets, wireless earphone stocks outperformed the entire market, gaining 3.9 per cent. New flat sales in Hong Kong at 15-year high as developers offer deep discounts amid protests, impending vacancy tax Some of them jumped 10 per cent, including Edifier Technology, Anfu CE LINK, Shenzhen Everwin Precision Technology and Shenzhen Rapoo Technology. Luxshare Precision Industry, a supplier to Apple, rose 5 per cent to 36.05 yuan. Liquor stocks were among the worst-performing sectors, falling 0.3 per cent overall, according to a gauge tracking them. Kweichow Moutai, the world’s most valuable liquor company, climbed 0.7 per cent, Anhui Gujing Distillery fell 0.4 per cent, Anhui Yingjia Distillery declined 0.1 per cent, and Anhui Golden Seed Winery dropped 3.1 per cent.