Hong Kong, China stocks rise on increased optimism a partial trade deal will be worked out by world’s two leading economies
- Gold-linked stocks fall, as traders move out of the safe haven asset
- Tencent, Alibaba and Meituan Dianping gained
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.