Hong Kong Stocks Rally on Eased U.S.-China Tensions; Hang Seng Peaks Since April

Hong Kong shares rose on Wednesday amid optimism over U.S.-China trade tension de-escalation and President Trump's moderated stance on Federal Reserve Chair Powell. The Hang Seng Index climbed 2.37% to its highest since April, while mainland Chinese stocks remained flat due to uncertainty in trade relations.

Hong Kong's market saw significant gains on Wednesday as shares tracked global peers, buoyed by promising signs of reduced Sino-U.S. trade tensions. President Donald Trump's shift from attacking Federal Reserve Chair Jerome Powell contributed to the positive sentiment.

The Hang Seng Index surged 2.37%, its highest closing since April 3, while the Hang Seng China Enterprises and Hang Seng Tech indices also posted robust gains. Analysts noted improved market stability due to Trump's conciliatory tone and potential trade de-escalation with China, though mainland Chinese shares were mostly flat, reflecting ongoing wariness.

During a media interaction on Tuesday, Trump conveyed hope that a trade agreement with China could significantly lower tariffs. However, U.S. Treasury Secretary Scott Bessent outlined the negotiations as a prolonged process. Meanwhile, the Shanghai Composite Index marginally dipped as investors awaited further developments in trade talks.

(With inputs from agencies.)