China, Hong Kong stocks rise on hopes geopolitical tensions will ease
- Hong Kong benchmark Hang Seng was up 0.4%
SHANGHAI: China and Hong Kong stocks rose on Tuesday, led by artificial intelligence and gold-related shares, as market sentiment was lifted by continued negotiations between the US and Iran, despite China’s exports showing signs of weakness in March.
China’s blue-chip CSI300 Index rose 0.8% by the lunch break, while the Shanghai Composite Index gained 0.6%.
Hong Kong benchmark Hang Seng was up 0.4%.
Sources told Reuters that both sides have left the door open to dialogue, and a US official said there was forward motion on trying to get to an agreement.
China’s export engine slowed in March as buyers chasing an AI-fuelled future ran into the hard reality of war in the Middle East, which has sparked an energy shock and complicated Beijing’s push to keep growth on track.
Onshore artificial intelligence shares rose 2.6%, while semiconductor stocks climbed 3.1%.
Non-ferrous metal shares gained 1.7%, while materials listed offshore were up 1.9%. Tech giants traded in Hong Kong were roughly flat.
UBS China equity strategist Meng Lei expects ETFs, leveraged funds, private funds, and insurance money to be the key sources of new capital in onshore shares.
Given near-term uncertainty from geopolitical risks, he recommended a balanced allocation between growth and value and between large and small caps.
Once markets stabilize, he favors growth and cyclical styles, citing a “slow-bull” backdrop supportive of growth, and potentially positive PPI and improving industrial profit growth as tailwinds for cyclicals.
Pop Mart shares jumped 6% after Chinese value investor Duan Yongping signalled interest in the stock in a post on his social platform.‑Reuters
Comments