Hong Kong Stocks Hover at Near 3-Month High
Hong Kong shares rose 173 points or 0.7% to 24,337 on Wednesday morning, picking up from a slight dip the day before. The benchmark index hit a near three-month peak after the U.S. and China reportedly reached a trade agreement framework following two days of high-level talks in London.
Key aspects of the deal include easing U.S. tech export curbs and resolving China’s rare earth export restrictions. Locally, Hong Kong reaffirmed its commitment to the USD currency peg, calling it a “fundamental success factor,” the city leader John Lee said.
Gains were broad-based, led by property, financials, and tech. However, upside was capped by a drop in U.S. futures as traders grew cautious ahead of May’s inflation data. A hotter-than-expected print could unsettle markets already jittery over inflation risks.
Meantime, concerns about intense competition among Chinese EV makers lingered. Early winners included Mixue Group (3.5%), Kingdee Intl. (2.6%), BOC Hong Kong (1.9%), and AIA Group (1.7%).
Source: Trading Economics
