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.
At the close, China’s blue-chip CSI300 Index was up 0.5%, while the Shanghai Composite Index gained 0.4%.
Hong Kong’s benchmark Hang Seng jumped 1.5%, hovering near a two-month high.
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.
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.
Healthcare stocks listed in Hong Kong and mainland A-shares advanced 2.6% and 1.4%, respectively.
Shares of biotech firm 3SBIO surged more than 30%, after the firm signed a licensing deal with US drugmaker Pfizer.
The consumer sector was another outperformer, with Hang Seng SCHK Consumer Discretionary Index gaining 1.2%.
Raisah Rasid, global market strategist at J.P. Morgan Asset Management suggested investors, said China’s comprehensive monetary stimulus package “underscores its focus on stimulating domestic growth and countering external downside risks”.
She suggested investors to diversify exposure with companies that supported by domestic consumption in Asia.
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