Hong Kong Stock Surge: EV Makers Spark Market Rally Amid Easing Trade Tensions

Hong Kong stocks soared to a near one-month high driven by signs of easing Sino-U.S. trade tensions and robust sales in the electronic vehicle sector. The Hang Seng and Hang Seng China Enterprises Indexes both rose, reflecting investor optimism. Meanwhile, tech stocks and the Chinese yuan showed strong performances.

Hong Kong's stock market experienced a significant rally on Friday, reaching a near one-month peak. This surge was driven by encouraging signs of easing trade frictions between China and the U.S., providing much-needed relief to investors.

The benchmark Hang Seng Index climbed 1.7%, recording its highest level since April 3, as electronic vehicle makers exhibited strong sales, boosting investor confidence. The Hang Seng China Enterprises Index also marked a significant rise, climbing 1.8%.

Meanwhile, tech stocks, including Alibaba and Tencent, surged alongside a stronger Chinese yuan, further enhancing market enthusiasm. Analysts noted the potential de-escalation in trade tensions was a key factor, as investors looked forward to renewed negotiations between China and the U.S.

(With inputs from agencies.)