Hong Kong stocks rise after US-China talks triggers cautious optimism, investors eye key data releases

Hong Kong stocks rise after US-China talks triggers cautious optimism, investors eye key data releases

08 Apr Hong Kong stocks rise after US-China talks triggers cautious optimism, investors eye key data releases

Posted at 02:58h in Asia by

Hong Kong stocks edged up in early trade on Monday, driven by cautious optimism around US-China talks, described as “extensive and productive” by US Treasury Secretary Yellen. Investors were however watchful ahead of a flurry of key economic data releases during the week that will shed light on the strength of China’s economy in March.

The Hang Seng Index gained 0.8 per cent to 16,862.981 as of 10.32am local time. The Hang Seng Tech Index added 1.1 per cent and the Shanghai Composite Index climbed 0.1 per cent as trading resumed after a two-day holiday.

Investors are tracking China’s visit US Treasury Secretary Janet Yellen, who met with Chinese Premier Li Qiang to talk about issues including industrial overcapacity. The two nations agreed to hold extensive exchanges on balanced growth in the domestic and global economies.
Gold producer Zijin Mining Group rallied 3.2 per cent to HK$17.34 yuan after bullion prices rose to a record. Electric vehicle makers rallied after China Commerce Minister Wang Wentao said US and European accusations of EV overcapacity are groundless. Li Auto rose 4.1 per cent to HK$121 and BYD climbed 2.2 per cent to HK$202.20.

But Chinese search engine operator Baidu slid 2.5 per cent to HK$102.50 and sportswear maker Li Ning lost 2.7 per cent to HK$20.20. Tencent Holdings retreated 1.3 per cent to HK$305.60.

China is due to release March inflation data on Thursday and foreign trade statistics on Friday. The central bank may also reveal figures on new loans, money supply and aggregate financing during the week.

Two companies started trading on the mainland exchanges. Changzhou Wujin Zhongru Electronic Technology, which makes lithium-battery accessories, jumped 87 per cent from its IPO price to 40.60 yuan in Shenzhen and Wuxi Dingbang Heat Exchange Equipment surged 108 per cent to 12.90 yuan in Beijing.

Other major Asian markets were broadly higher tracking gains in US stocks. Japan’s Nikkei 225 climbed 1.4 per cent, while South Korea’s Kospi rose 0.1 per cent and Australia’s S&P/ASX 200 added 0.2 per cent.

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