China, Hong Kong stocks join global relief rally on news US-Iran talks will resume
- China's blue-chip index CSI300 edged up 0.2% by the lunch break
SHANGHAI: China and Hong Kong stocks gained on Wednesday, joining a relief rally in global markets amid hopes the worst of the war-triggered oil shock is over.
China’s blue-chip index CSI300 edged up 0.2% by the lunch break, while the Shanghai Composite Index rose 0.4%. In Hong Kong, Hang Seng advanced 0.8%.
They joined a broad rebound in Asian equities after overnight strength on Wall Street, as hopes for a diplomatic solution to the Iran war lifted sentiment.
US President Donald Trump said talks could resume in Pakistan over the next two days, after breaking down over the weekend. Pakistani and Iranian officials also said negotiations could restart.
“With Brent crude prices holding mostly below $100 per barrel the past week, markets have been holding out for a diplomatic solution,” DBS analyst Philip Wee said in a note.
“For now, the worst oil shock scenario appears to be partially contained.”
Such optimism overcame economic worries as the International Monetary Fund cut its growth outlook on Tuesday due to war-driven energy price spikes.
In China, chipmakers, drugmakers and logistics stocks led the gains, but new energy vehicle producers, battery makers and commodity companies declined.
In Hong Kong, biotech firms tech plays and media companies jumped.
Energy and materials sectors are among the laggards.‑Reuters
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