Uptrend in China and Hong Kong Stocks: Profits and Connectivity Boost

Stocks in China and Hong Kong rose on Tuesday due to a recovery in corporate earnings and positive government data. Tech companies led the charge, with significant gains in financial and gold-related stocks. The increase in industrial profits and Wall Street's success contributed to the positive investor sentiment.

Stocks in China and Hong Kong showed an uptrend on Tuesday, buoyed by a notable recovery in corporate earnings, as per government data. The Shanghai Composite Index registered a 0.2% gain, and the Hang Seng Index in Hong Kong saw a significant rise of 1.4%.

Investor confidence was strengthened by data indicating increased industrial profits in China, marking a recovery since 2021. The improved profitability, particularly in downstream sectors, was highlighted by Goldman Sachs, alongside the influence of Wall Street's continued upward trend.

Tech stocks were prominent performers in China, with sectors like chipmakers, electronics firms, and telecom companies leading the growth. Additionally, financial shares surged in Hong Kong, and China's central bank's commitment to enhancing financial connectivity with Hong Kong bolstered the market atmosphere.

(With inputs from agencies.)