HONG KONG: China and Hong Kong stocks climbed on Wednesday, joining a broader regional recovery, as investors welcomed signs of potential progress in Iran ceasefire talks.
The Shanghai Composite Index jumped 1.3 percent to reclaim the key 3,900 level, while the blue-chip CSI 300 Index gained 1.4 percent.
In Hong Kong, the benchmark Hang Seng Index climbed 1.1 percent, and the Hang Seng Tech Index jumped 1.9 percent.
Sentiment improved after US President Donald Trump said Washington was making progress in negotiating an end to the war with Iran, although the situation remains fluid as Israel’s strike on Tehran on Wednesday added fresh uncertainty.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.7 percent.
“I think everyone wants to believe the war could end relatively soon - though it’s unclear if that is true, people are choosing to believe it for now,” said Jasmine Duan, senior investment strategist at RBC Wealth Management. “At least there is a short-term risk relief.”
Chinese stocks still offer certain allocation value from a longer-term perspective, with many targets from tech darlings to more traditional resource stocks to choose from, she added.
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