SHANGHAI: Hong Kong stocks rose on Wednesday, led by tech shares, as easing US-China trade tensions bolstered sentiment, while investors shifted their focus to corporate earnings. China stocks edged up on the day.
China stocks largely flat, HK retreats
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China’s blue-chip CSI300 Index was up 0.3% by the lunch break, while the Shanghai Composite Index gained 0.2%. Hong Kong benchmark Hang Seng was up 1.4%.
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The US will cut the “de minimis” tariff for low-value shipments from China to as low as 30%, further de-escalating a potentially damaging trade war between the world’s largest economies.
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Chinese stocks have recovered all their losses, triggered by US President Donald Trump’s punitive tariff measures imposed on April 2.
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“With the most extreme uncertainties out of the way, we think fundamentals will be a more important driver of share price performances going forward and it is time to dial-up the risk setting,” said UBS strategist James Wang.
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An agreement between US and Chinese officials after weekend talks in Geneva led to a rally in global markets on Monday.
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Wang favored the internet sector and shares traded in Hong Kong over those listed in mainland China.
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Tencent and Alibaba rose 2% and 1.6%, respectively, on Wednesday as investors awaited their earnings to see if the results could help spark another tech rally. Tencent’s results are due later in the day and Alibaba’s on Thursday.
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Tech majors in Hong Kong rose 1.4% and have climbed nearly 20% year-to-date.
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E-commerce retailer JD.com jumped 2.7%, after the company reported quarterly revenue that surpassed market expectations.
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Tencent Music Entertainment’s shares surged 13%, after it surpassed first-quarter revenue expectations on Tuesday.
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