HK, China stocks rise on hopes around Sino-U.S. ties, stimulus

** Blinken's speech "is generally interpreted to be on the positive side, given extremely low expectations on Sino-U.S. ties," said Yang Hongxun, an analyst at investment consultancy Shandong Shenguang. ** Hopes for improving Sino-U.S. ties, and better-than-expected earnings of Alibaba Group and Baidu fuelled buying into Hong Kong-listed tech shares.

Hong Kong stocks jumped more than 2% on Friday, while China equities also rose, as comments by a U.S. official on relations with China are interpreted by some as positive. ** Also lifting the market were expectations that Beijing will implement more measures to revive growth, though many investors believe China's zero-COVID policy remains a key drag on the economy.

** Hong Kong's Hang Seng Index gained 2.8% by lunch break, while the Hang Seng Tech Index surged 3.7%. ** China's bluechip CSI300 index rose 0.6%, but is still on track to decline more than 1% for the week. The Shanghai Composite Index gained 0.5%.

** The United States will not block China from growing its economy, Blinken said in a speech on U.S. strategy toward China. "We are not looking for conflict or a new Cold War. To the contrary, we're determined to avoid both," he said. ** Blinken's speech "is generally interpreted to be on the positive side, given extremely low expectations on Sino-U.S. ties," said Yang Hongxun, an analyst at investment consultancy Shandong Shenguang.

** Hopes for improving Sino-U.S. ties, and better-than-expected earnings of Alibaba Group and Baidu fuelled buying into Hong Kong-listed tech shares. ** Alibaba, whose quarterly revenue and earnings beat market forecast, shot up 12% in Hong Kong. Baidu shares surged 15%, after posting better-than-expected first-quarter revenue.

** Profits at China's industrial firms fell at their fastest pace in two years in April, data showed, but investors expect more market-friendly policies ahead, after Premier Li Keqiang vowed to ensure reasonable growth in the second quarter. ** China's energy and healthcare stocks both rose roughly 1.5%. Banking, tourism and industrial sectors also climbed.

** However, some investors remain cautious. "What is required is not a loosening around the edges of these broad policy priorities, but wholesale policy U-turns," wrote Alex Wolf, Head of Investment Strategy, Asia at JPMorgan Private Bank.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)