HONG KONG: China and Hong Kong stocks rose on Thursday with tech and auto shares leading gains, shrugging off threats of new car tariffs from US while JPMorgan upgraded its market outlook on China.
China’s blue-chip CSI300 index gained 0.3% and the Shanghai Composite index added 0.2% at market close, both reversing losses at the opening hours.
In Hong Kong, the Hang Seng Index was up 0.4% to recover from a three-week low. The Hang Seng Tech Index added 0.3%.
The chip sector rallied 1.3%, while automobiles sub-index also reversed losses to climb up 0.9%, leading onshore markets higher.
US President Donald Trump unveiled a 25% tariff on imported cars starting next week, but also said he may give China a reduction in tariffs to get a TikTok deal done.
“His confusing and contradicting statements make the markets somehow turn more nonchalant,” said George Au, Phillip Securities’ deputy sales director.
Investors now tend to be less startled by his announcements, with many of the uncertainties already priced in, he added.
Also aiding sentiments, JPMorgan joined Wall Street peers to turn more bullish on China, raising its year-end target for the MSCI China index’s to 95. This is 7% higher than its previous call.
The recent market volatility could last through US tariff policy moves in early April, strategists including Wendy Liu said in a note.
Comments
Comments are closed for this article.