HONG KONG: China and Hong Kong stocks rose broadly on Tuesday, led by healthcare and consumer shares, as market sentiment improved after China cut key lending rates for the first time since October.
China, Hong Kong stocks sag on soft data despite tariff truce lift
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By midday, China’s blue-chip CSI300 Index was up 0.6%, while the Shanghai Composite Index gained 0.4%.
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Hong Kong’s benchmark Hang Seng jumped 1.3%, hovering near a two-month high.
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China cut benchmark lending rates for the first time in seven months on Tuesday, while major state banks lowered deposit rates as authorities work to ease monetary policy to help buffer the economy from the impact of the Sino-US trade war.
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With the recent substantial progress in the US-China tariff negotiations and the announcement of rate cuts, market uncertainty has eased and risk appetite has rebounded, TF Securities said in a note.
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Healthcare stocks listed in Hong Kong and mainland A-shares advanced 3.8% and 1.6%, respectively.
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Shares of biotech firm 3SBIO surged 36% by the lunch break, after the firm signed a licensing deal with US drugmaker Pfizer.
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The consumer sector was another outperformer, with Hang Seng SCHK Consumer Discretionary Index jumping 1.4%.
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Meanwhile, shares of Chinese electric vehicle battery giant CATL opened 12.5% higher than the subscription price on Tuesday after the company raised $4.6 billion in its Hong Kong listing, the largest in the world this year.
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Hong Kong shares of CATL jumped 17% by midday.
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The smaller Shenzhen index was up 0.86%, the start-up board ChiNext Composite index was higher by 1.05% and Shanghai’s tech-focused STAR50 index was up 0.51%.
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Around the region, MSCI’s Asia ex-Japan stock index was 0.30% higher, while Japan’s Nikkei index was up 0.22%.
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