China, Hong Kong stocks rise on Mideast ceasefire hopes

SHANGHAI: China and Hong Kong stocks rose on Thursday, as risk sentiment improved on hopes of a Middle East de-escalation.

China’s blue-chip CSI300 Index edged up 0.2% by the lunch break, while the Shanghai Composite Index gained 0.3%. Hong Kong benchmark Hang Seng was up 1.6%.

The mood brightened after Iran said on Wednesday it was reviewing a US peace proposal that sources said would formally end the war but leave unresolved key US demands that Iran suspend its nuclear program and reopen the Strait of Hormuz.

“Despite the lack of a definitive resolution, defensive positioning has lowered the threshold for positive surprises to influence price action,” UBS strategist Rohit Arora said. Onshore energy shares fell 3.9%, the Coal Index dropped nearly 4.5%.

The 5G Communication Index led gains onshore, up 3.5%.

Hong Kong-listed tech majors were up 3.1%, following an overnight rally in their counterparts listed in New York. Alibaba shares jumped 4.3%.

China’s tourism sector saw a rise in trips during the May Day holiday, though official data released the day after the five-day break did not include spending figures that usually provide a fuller picture of consumption over the period.

Chinese liquor shares were up 1.1%, while food and beverage stocks edged up 0.4%.

Markets are watching closely for US-China developments as US President Donald Trump is set to meet Chinese President Xi Jinping in May on his first visit to China in eight years. (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)  ‑Reuters