China and Hong Kong stocks rally on trade optimism


Reuters | Hong Kong | Updated: 11-10-2019 10:13 IST | Created: 11-10-2019 10:01 IST
China and Hong Kong stocks rally on trade optimism
Image Credit: StoryBlocks
  • Country:
  • China

China and Hong Kong stocks advanced on Friday, as investors cheered signs of progress in the ongoing Sino-U.S. trade talks. The Hang Seng index added 2.2%, to 26,271.36 points, while the Hong Kong China Enterprises Index gained 2.0%, to 10,427.03 points. Both indexes were set for their best day since Sept. 4.

The CSI300 index rose 0.5% to 3,894.83 at the end of the morning session, while the Shanghai Composite Index gained 0.4% to 2,960.68.  Top U.S. and Chinese negotiators wrapped up the first day of trade talks in more than two months on Thursday as business groups expressed optimism the two sides might be able to ease a 15-month trade war and delay a U.S. tariff hike scheduled for next week.

U.S. President Donald Trump said "we had a very, very good negotiation with China", while a White House official said the talks had gone "probably better than expected". The developments of Sino-U.S. trade talks have been a major factor impacting the Hong Kong market, and any progress or partial agreement would greatly boost investor sentiment, Guodu Hong Kong wrote in a note.

Market participants had been awaiting favorable news for a rebound, as the overall valuations of Hong Kong stocks are quite cheap for now, the brokerage added. Meanwhile, developments towards a Brexit deal also helped sentiment.

A Brexit deal could be clinched by the end of October to allow the United Kingdom to leave the European Union in an orderly fashion, Irish Prime Minister Leo Varadkar said after what he called a very positive meeting with Boris Johnson. Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.23% while Japan's Nikkei index was up 1.09%.

The yuan was quoted at 7.1038 per U.S. dollar, 0.16% firmer than the previous close of 7.115. The largest percentage gainers in the main Shanghai Composite index were Xinjiang Youhao Group Co Ltd, up 10.07%, followed by China Hi-Tech Group Co Ltd, gaining 10.06% and Bomin Electronics Co Ltd, up by 10%.

The largest percentage losses in the Shanghai index were Panda Financial Holding Corp Ltd, down 9.96%, followed by Skshu Paint Co Ltd, losing 7.65% and Lifan Industry Group Co Ltd, down by 6.02%. The top gainers among H-shares were Sunac China Holdings Ltd, up 4.92%, followed by PICC Property and Casualty Co Ltd, gaining 4.7% and Anhui Conch Cement Co Ltd, up by 4.35%.

The three biggest H-shares percentage decliners were CSPC Pharmaceutical Group Ltd, which has fallen 7.03%, Geely Automobile Holdings Ltd, which has lost 1.3% and Postal Savings Bank of China Co Ltd, down by 0.2%. As of 04:16 GMT, China's A-shares were trading at a premium of 29.11% over the Hong Kong-listed H-shares.

 

Also Read: Hong Kong protesters block roads near stadium where leader Carrie Lam spoke

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

Give Feedback