Hong Kong Stocks Rise as Investors Await Earnings From HSBC, ICBC, China Construction Bank
Hong Kong stocks rose on Tuesday, as traders kept an eye on the latest developments in the US-China tariff talks and corporate results to assess the impact of the ongoing trade war.
The Hang Seng Index added 0.4 per cent to 22,063.94 as of 9.47am local time. The Hang Seng Tech Index added 0.8 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both slipped 0.1 per cent.
Chinese biotech firm WuXi AppTec rose 4.6 per cent to HK$60.90 after net income beat analysts’ estimates, CSPC Pharmaceutical Group added 3.8 per cent to HK$6.27. Alibaba Health Information Tech advanced 2.4 per cent to HK$4.72, while port operator CK Hutchison Holdings gained 2 per cent to HK$43.95.
On the flip side, Chinese sportswear maker Li Ning dropped 2 per cent to HK$14.70 after it reported a low-single-digit increase in first-quarter same-store sales. China Petroleum and Chemical (Sinopec) declined 1.5 per cent to HK$3.88, while electric-vehicle maker BYD eased 1.1 per cent to HK$377.00.
US Treasury Secretary Scott Bessent said on Monday that it was up to China to take the first step in de-escalating the tariff fight with the US. The comment came after a Chinese foreign ministry spokesman denied any recent consultations or negotiations on tariffs between the two nations.
“We believe talks will begin that will move tariff rates down,” Morgan Stanley economists led by chief Asia economist Chetan Ahya said in a note late on Monday. “But a comprehensive deal takes time, so tariffs are likely to remain somewhat high.”
They added that some damage had been done by the tariffs, and the path ahead could lead to a “sharp, synchronous slowdown” unless tariff-related uncertainty was resolved quickly.
Financial heavyweights, including HSBC Holdings, Bank of China, ICBC, Bank of Communications and China Construction Bank, are due to announce earnings on Tuesday.
HSBC rose 0.5 per cent to HK$86.20, while Bank of China gained 0.9 per cent to HK$4.45.
“[China] is where some companies will obviously face difficulties because of the tariffs, but we believe some areas of the market will be supported by domestic innovation and government support to boost consumption,” Fabiana Fedeli, a chief investment officer at British asset manager M&G Investments, said on Monday.
Elsewhere in Asia-Pacific, Japan’s Nikkei 225 gained 0.4 per cent, Australia’s S&P/ASX 200 rose 0.5 per cent and South Korea’s Kospi advanced 0.6 per cent.
Source: SCMP
