Hong Kong stocks jump on BYD earnings boost while Alibaba, Tencent advance as China signals significant GDP rebound
- BYD followed CNOOC in boosting market confidence with better corporate earnings guidance as the Q3 reporting season kicks in
- China’s GDP ‘rebounded significantly’ last quarter, planning agency NDRC said, even as the statistics bureau delayed its publication
The Hang Seng Index jumped 1.8 per cent to 16,914.58 at the close of Tuesday trading to claw its way further up from the lowest level in 11 years. The Tech index surged 4.3 per cent while the Shanghai Composite Index retreated 0.1 per cent. Markets in Japan, Australia and South Korea also rallied.
Tech stocks tracked overnight gains in US equities, as Alibaba Group and JD.com both jumped nearly 4 per cent to HK$76.10 and HK$178.70, respectively. Tencent appreciated 2.9 per cent to HK$254.40, while Meituan gained 2.8 per cent to HK$153.90.
“China’s economy performance is likely to show a slow but steady recovery with easier monetary policies,” strategists at Beijing-based Capital Securities said in a research note on Tuesday.
The economy grew 0.4 per cent in the second quarter as Covid-19 curbs hit manufacturing, slowing from a 4.8 per cent expansion in the first three months of 2022, government data showed.
Three stocks debuted on Tuesday. Shanghai Orient-Chip Technology dropped 16.6 per cent to 93.93 yuan, while Transwarp Technology surged 60 per cent to 76 yuan in Shanghai. Flowing Cloud Technology, a company providing augmented and virtual-reality content and services, retreated 4 per cent to HK$2.12 in Hong Kong.
Asian equites rallied in sync with global peers. Stocks in Japan and South Korea both gained 1.4 per cent, while those in Australia jumped 1.7 per cent.