China stocks advance as ceasefire hopes lift Shanghai and Hong Kong benchmarks
Mainland China and Hong Kong markets gain ground as easing political tensions and stronger factory-gate prices lift sentiment
China’s stocks climbed on Friday, with key benchmarks in mainland China and Hong Kong briefly returning to levels last seen about two weeks ago, as signs of a possible ceasefire between the US and Iran helped boost sentiment.
Hong Kong’s Hang Seng Index climbed 0.6 per cent to 25,893.54 at the close, after gaining as much as 1.3 per cent to briefly top the 26,000 mark – a level not seen since March 18. The Hang Seng Tech Index advanced 0.8 per cent.
On the mainland, the Shanghai Composite Index closed 0.5 per cent higher, after rising as much as 1.1 per cent to briefly move above the 4,000 threshold for the first time since March 19. The CSI 300 Index lifted 1.5 per cent. Across exchanges in Shanghai, Shenzhen and Beijing, nearly 4,500 stocks were higher in the early morning session, pointing to a strong risk-on mood.
The rebound in equities came amid hopes of easing geopolitical tensions, as Iran and the US were expected to hold talks in Islamabad on Saturday, raising the possibility of a more lasting ceasefire. US Vice-President JD Vance was set to lead the American delegation.
The rally also followed China’s producer price index reporting a 0.5 per cent increase year on year in March, ending a 41-month stretch of contraction, in a sign that deflationary pressures may have eased.
Gains in Hong Kong were led by tech and energy heavyweights. E-commerce major Alibaba Group Holding rose 2.1 per cent to HK$125.50, and online-game provider NetEase climbed 0.8 per cent to HK$178.40. Electric vehicle (EV) maker Li Auto advanced 3.2 per cent to HK$74.20, and peer BYD added 3.2 per cent to HK$105.10. Chipmaker Semiconductor Manufacturing International Corp surged 4.6 per cent to HK$58.25, and EV battery maker Contemporary Amperex Technology soared 7.7 per cent to HK$681.50.