Hong Kong stocks continue winning week on hopes of US-EU trade agreement
‘What began as tariff-fuelled despair back in April is fast becoming a full-blown risk rally,’ SPI Asset Management analyst says
The Hang Seng Index rose 0.5 per cent to 25,667.18 at the close, the highest level since November 16, 2021. The benchmark’s five-day advance was the longest since May.
The Hang Seng Tech Index slipped 0.1 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both climbed 0.7 per cent.
Solar panel maker Xinyi Solar Holdings and delivery service ZTO Express rallied on expectations that Beijing’s drive to cut unwanted supply in the photovoltaic and e-commerce industries would boost profit margins. Biotech firm Wuxi Biologics gained after forecasting higher first-half profits.
The advance in Hong Kong stocks took cues from US and Asian equities after reports emerged that the EU would accept a 15 per cent tariff on its exports to the US. That marked another breakthrough in President Donald Trump’s tariff policy after cutting a deal with Japan this week.
Investors cheered the likely outcome, with the S&P 500 index notching a fresh record high. The MSCI Asia-Pacific Index rose for a sixth consecutive day, its longest such stretch since January. Investors had expected a stalemate in the talks between the US and the EU, which were haggling about a 30 per cent rate.