HONG KONG: China and Hong Kong stocks edged up on Friday, registering their second consecutive weekly gains, as the US and China both softened their attitudes towards a full-on trade war to investors’ relief.
China’s blue-chip CSI300 index rose less than 0.1% at close, while the Shanghai Composite index was little changed.
The Hang Seng Index added 0.3% in Hong Kong. That took the gains for the holiday-shortened week to 2.7%, the best performance in nearly two months.
All three indexes notched up a second week of gains and stood near their highest levels since April 3, when US President Donald Trump announced “reciprocal tariffs” on US imports and triggered a market rout across the globe.
Beijing has granted some exemptions on US imports from its 125% tariffs in an effort to mitigate the economic fallout from the trade war, Reuters reported on Friday. That follows a shift in tone from the White House this week, which is considering easing tensions with China. US President Donald Trump also said on Thursday that trade talks between the two countries were underway.
Also lifting the mood, the Politburo of China’s Communist Party said on Friday that it will support firms and workers most affected by the impact of US tariffs, and ease monetary policy to maintain stability at home.
Still, markets will stay cautious and remain in wait-and-see mode at the moment given the recent volatility, said Eugene Hsiao, head of China equity strategy at Macquarie Capital, Hong Kong. Tech shares lifted both onshore and offshore markets on Friday. The CSI Artificial Intelligence Index added 1% and the chip sector sub-index erased earlier losses to climb 0.2%.