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Hong Kong stocks snap 2-day drop amid US, China efforts to resolve Israel-Hamas conflict, state buying support
- Market rebounded as US and Chinese officials step up diplomatic efforts to stop the Israel-Hamas war from spreading
- Two stock debutants in Shanghai and Shenzhen posted hefty gains
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Hong Kong stocks advanced, halting a two-day slide, after US and Chinese officials stepped up diplomatic efforts to help prevent the Israel-Hamas war from spilling into a regional conflict. Prices also rebounded on speculation China’s state-run funds will keep supporting the market.
The Hang Seng Index rose 0.7 per cent to 17,773.49 on Tuesday, after rising as much as 1 per cent. The Tech Index added 0.6 per cent while the Shanghai Composite Index gained less than 0.3 per cent.
Alibaba Group climbed 0.9 per cent to HK$82, e-commerce rival JD.com advanced 2.2 per cent to HK$106, while online travel agency Trip.com climbed 1.3 per cent to HK$258.80. Sportswear maker Anta appreciated 0.4 per cent to HK$90.95 and food delivery platform operator Meituan gained 0.7 per cent to HK$114.50.
President Joe Biden will travel to Israel and Jordan on Wednesday to meet with both Israeli and Arab leaders on the Middle East crisis. China’s Foreign Minister Wang Yi held talks to his Russian counterpart and called on the UN Security Council to help resolve the conflict.
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“The prevailing pessimism in the market has eased,” CICC analysts wrote in a note to client. The market has downside protection after a five-week selloff, but the foundation for further rebound remains fragile, they said.
The Hang Seng Index has advanced 1.5 per cent since traders returned from the “golden week” holiday. The rebound was aided by speculation about market purchases by China after the nation’s sovereign wealth fund last week pledged to keep buying more shares in the nation’s “big four” lenders.
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