Hong Kong stocks close at near 3-week high on hopes of easing tensions with US

SHANGHAI: Hong Kong shares rose on Wednesday, tracking global peers amid optimism over a potential de-escalation in Sino-US trade tensions and as US President Donald Trump backed off from attacking Federal Reserve Chair Jerome Powell.

Mainland Chinese shares, however, finished largely flat.

Hong Kong’s benchmark Hang Seng index jumped 2.37% to close at 22,072.62 points, its highest since April 3.

The Hang Seng China Enterprises Index rose 2.08%, while the Hang Seng Tech Index surged 3.07%.

Market sentiment stabilised “following a more conciliatory tone from President Trump and rising hopes of de-escalation in the US-China trade tensions,” analysts at OCBC said in note.

During a question-and-answer volley with reporters on Tuesday, Trump expressed optimism that a trade deal with China could “substantially” cut tariffs.

US Treasury Secretary Scott Bessent said that he believes there will be a de-escalation in US-China trade tensions, but negotiations with Beijing have not yet started and would be a “slog.”

Trump also backed off from threats to Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates.

However, mainland Chinese stocks were largely muted as investors remained wary of fast-changing tariff developments and huge uncertainty around the prospects of bilateral trade relations with the United States. At the close, the Shanghai Composite index dipped 0.1% at 3,296.36 points, while the blue-chip CSI 300 index inched up 0.08%.