Hong Kong Stocks Surge as Trade Tensions Ease and EV Sales Boom

Hong Kong stocks reached a near one-month high due to easing trade tensions between the U.S. and China, coupled with a rally in electronic vehicle makers driven by strong sales. The Hang Seng Index climbed 1.7%, while the Hang Seng China Enterprises Index ended 1.9% higher.

Hong Kong stocks made impressive gains on Friday, reaching a near one-month high, as investors took solace from signs of easing Sino-U.S. trade tensions. This positive momentum was further fueled by the rally of electronic vehicle (EV) makers on the back of strong sales figures.

The Hang Seng Index surged by 1.7% to close at 22,504.68, marking its highest close since April 3. This recovery follows a challenging April, where the index plummeted by 4.3%, its worst month since November 2024, impacted by U.S. President Donald Trump's 'reciprocal tariff' that rattled global markets.

Elsewhere, the Hang Seng China Enterprises Index rose 1.9% to a one-month high of 8,231.04. The potential de-escalation of the trade war, signalled by China's willingness to evaluate an offer for talks from Washington, brought relief to investors. Meanwhile, EV makers, led by Xpeng with a 273% year-on-year increase in deliveries, spearheaded the sector's gains.

(With inputs from agencies.)