Hong Kong Shares Near Record Highs On Strong US Jobs Data
Sentiment turns positive as US indexes approach record highs hit earlier this year on stellar jobs data
Hong Kong stocks extended a rally on Wednesday, taking the benchmark index to a two-month high on upbeat US jobs data and hopes for a de-escalation in the US-China trade war.
The Hang Seng Index rose 0.7 percent to 23,671.17 as of 11:21 a.m. local time, the highest since March 19. The Hang Seng Tech Index rose 1 percent. On the mainland, the CSI 300 Index rose 0.5 percent and the Shanghai Composite Index added 0.4 percent.
BYD and other Chinese electric vehicle (EV) makers rose after the government launched a program to promote sales of green-energy cars in rural areas. Ping An Insurance Group plunged after saying it would raise HK$11.77 billion ($1.5 billion) in convertible bonds, potentially diluting its earnings per share.
Overnight gains on Wall Street pushed U.S. benchmarks closer to record highs hit earlier this year after a government report showed continued labor market resilience and new job openings topped economists’ projections.
Investors are also watching to see whether Chinese President Xi Jinping will speak to his U.S. counterpart Donald Trump about a long-term trade deal between the world’s two largest economies. While the White House has said talks will take place this week, Beijing has not confirmed it.
“There is a possibility that the market will rise further once the tariff conflict eases,” said Zheng Xiaoxia, an analyst at Hua An Securities. “China’s exports are expected to recover and that will boost risk appetite. However, the sustainability of the rally depends on more policy support and significant improvement in fundamentals.” BYD rose 1.5 percent to HK$406.60 and Geely Automobile Holdings gained 3.2 percent to HK$18.30. Li Auto rose 0.3 percent to HK$116.80.
Alibaba Group Holding rose 0.7 per cent to HK$114.70 and Tencent Holdings gained 0.9 per cent to HK$509.50.
Ping An fell 1.3 per cent to HK$45.85.
Other major Asia-Pacific markets traded higher. Japan’s Nikkei 225 rose 0.8 per cent and Australia’s S&P/ASX 200 gained 0.7 per cent. South Korea’s Kospi rose 2.4 per cent, as a new presidential election ended months of political turmoil.
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Source: Bloomberg
