Hong Kong stock rally extends as investors bet on US-China trade agreement
Investors shrug off US President Donald Trump’s mention of a 155 per cent tariff on Chinese goods if negotiations fail
Hong Kong stocks extended a rally on Tuesday as investors continued to bet on easing US-China trade tensions.
The Hang Seng Index rose 0.7 per cent to 26,027.55 at the close after climbing as much as 2 per cent earlier. The Hang Seng Tech Index surged 1.3 per cent.
On the mainland, the CSI 300 Index gained 1.5 per cent and the Shanghai Composite Index added 1.4 per cent.
China Life jumped 6 per cent to HK$24.95, BYD Electronic rose 3.8 per cent to HK$40.22 and machine-tool maker Techtronic Industries gained 3.7 per cent to HK$96.80.
Making its trading debut, JST Group, a provider of software for enterprise resource planning in e-commerce, surged 23.9 per cent to HK$37.90.
On the negative side, Chinese toymaker Pop Mart slid 8.1 per cent to HK$250.40, state-owned property manager China Resources Mixc Lifestyle Services lost 1.9 per cent to HK$40.62, and China Telecom slipped 1.6 per cent to HK$5.60.
Investors appeared willing to shrug off US President Donald Trump’s comment on Monday that he would impose a 155 per cent tariff on Chinese goods if trade negotiations between the two countries failed to reach an agreement. The threat came after tensions between the world’s two largest economies showed signs of easing over the weekend as Trump said he would meet Chinese President Xi Jinping later this month at the Asia-Pacific Economic Cooperation forum in South Korea.