HONG KONG: China stocks recorded their biggest gain in six weeks on Tuesday, as fresh signs of easing Sino-US trade tensions and upbeat corporate earnings boosted risk appetite.
At market close, the Shanghai Composite index climbed 1.4 percent to 3,916.33, the best single-day gain since September 11. The blue-chip CSI300 index was up 1.5 percent.
Hong Kong’s Hang Seng Index was up 0.7 percent at 26,027.55, and the tech index gained 1.3 percent.
US President Donald Trump on Monday expressed optimism about a potential fair trade deal with Chinese President Xi Jinping, following his comments that the hefty tariff on China is “not sustainable”.
Most investors now “do not expect a meaningful derail of the US-China trade talks,” Bank of America said in a note, citing recent marketing feedback.
Instead, they increasingly see both parties muddling through and eventually reaching an agreement, and an in-person Trump-Xi meeting during APEC by month-end remains the base case, the bank added.
KGI Asia’s CIO Cusson Leung said the firm remains overweight on China and Hong Kong shares, expecting the tech-led rally to broaden out, and is looking to buy laggards like financials and consumer discretionary on dips to increase its exposure.
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