Technology, electric car stocks lead charge on China markets, while Hong Kong ends lower ahead of Christmas break
- The Shanghai Composite Index closes higher for the first time in five sessions
- Lithium battery makers surge on enthusiasm over Tesla
China stocks advanced on Tuesday, boosted by improved sentiment in tech and car-related sectors, while the Hong Kong market ended a short trading session lower ahead of the Christmas holiday.
The Shanghai Composite Index rose 0.7 per cent to 2,982.68, capping its first gain in five sessions. The more tech-heavy Shenzhen Component Index climbed 1.3 per cent, and the ChiNext Index of start-ups listed in Shenzhen added 1.9 per cent.
In Hong Kong, the Hang Seng Index fell 0.2 per cent to 27,864.21, ending below the psychologically important 28,000-point support level. The market will resume trading on Friday.
“Technology shares have posted big gains this year, including sectors such as 5G and consumer electronics,” Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management, wrote in a note. “Gains in electric-vehicle stocks today ignited the overall market mood.”
Technology stocks including electric car-related stocks led the advance in China, driven by an overnight rally in US carmaker Tesla’s shares on Nasdaq.
Tesla shares, which reached a fresh intraday high of US$419.22 on Monday, have skyrocketed 74 per cent since the beginning of October. This has been driven by the company’s faster-than-expected production progress in its October earnings report, as well as a successful attempt to pull itself out of a chaotic period of litigation, government inquiries and lay-offs earlier this year.