HONG KONG: China and Hong Kong stocks rose on Tuesday, steadying in the wake of stronger regional markets and government-led support after a brutal selloff triggered by concerns over trade tariffs.
China’s blue-chip CSI 300 Index climbed 0.2% and the Shanghai Composite Index gained 0.3% in early trade, after both slid more than 7% on Monday.
Hong Kong’s Hang Seng Index jumped 2% after experiencing its steepest decline since the 1997 Asian financial crisis, while the Hang Seng Tech Index added 4.5%.
Beijing has publicly stepped up efforts to stabilise the market after US President Donald Trump slapped a 34% tariff on China last week. China has since responded with 34% levies on US imports.
Sovereign fund Central Huijin Investment, dubbed the “national team”, said it has bought China-listed shares via exchange-traded funds and will continue to increase holdings to “safeguard the smooth operation of the capital market.”
Several Chinese state holding companies have followed suit and vowed on Tuesday to increase share investment, while a slew of listed companies announced share buy-backs to support prices.
China stocks sink on trade war fears; Hong Kong dives 9%
Prior to Tuesday’s rebound, the blue-chip CSI 300 and the Shanghai Composite Index both plummeted over 7%, while Hong Kong’s Hang Seng Tech Index dropped nearly 19% since Trump’s “Liberation Day” tariffs threatened to disrupt global trade and potentially trigger a global recession.
Sentiment largely stabilised in Asia trading on Tuesday with major markets starting to claw back recent heavy losses.
Japan’s Nikkei 225 index rose 6% in a broad rally, while MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.1% firmer.
Comments
Comments are closed for this article.