Hong Kong stocks rose on Thursday, as investors looked for signs of easing geopolitical tensions following US leader Donald Trump’s remarks that he had a “pretty long meeting scheduled” in South Korea with Chinese President Xi Jinping next week.
The Hang Seng Index advanced 0.7 per cent to 25,976.98 at 3.05pm local time, after falling by 0.4 per cent earlier. The Hang Seng Tech Index gained 0.7 per cent. On the mainland, the CSI 300 Index lifted 0.3 per cent and the Shanghai Composite Index added 0.2 per cent.
Leading the gainers, sportswear producer Li Ning jumped 6.7 per cent to HK$18.57, while property developer Sun Hung Kai Properties advanced 1.5 per cent to HK$93.75. Search-engine giant Baidu rose 1 per cent to HK$116.20, and WeChat operator Tencent Holdings added 1.1 per cent to HK$636.50.
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On the negative side, blind-box toymaker Pop Mart International slumped 9.1 per cent to HK$233, while online-game provider NetEase dropped 0.4 per cent to HK$228.60. Short-video platform Kuaishou Technology tumbled 0.4 per cent to HK$73.45, and jeweller Chow Tai Fook Jewellery slipped 0.3 per cent to HK$15.65.
Sportswear producer Li Ning leads the gainers on Thursday. Photo: EPA alt=Sportswear producer Li Ning leads the gainers on Thursday. Photo: EPA>
Investors are watching closely for any signs that the potential talks between Xi and Trump could help stabilise markets rattled by geopolitical risks and uncertainty over global trade flows. Trump said the talks would range from soybean purchases to rare earth exports and the Russia-Ukraine war.
Chinese oil firm CNOOC advanced 2.5 per cent to HK$19.98 and peer PetroChina added 1.4 per cent to HK$8, after Trump announced sanctions on Russia’s largest oil producers.
Meanwhile, the White House was reportedly weighing export restrictions of US-made software to China, adding to the trade and geopolitical tensions.
“The market is adopting a wait-and-see attitude right now, as Donald Trump’s remarks often change,” said Kenny Tang, chairman of the Hong Kong Institute of Financial Analysts. “Investors will stay cautious until the meeting [with Xi] is confirmed. So for the time being, market conditions will likely remain volatile.”
Tang said there was support at the lower end of the trading range, such as around the 100-day moving average. “However, I believe the market will become more volatile when it goes above the 26,000-point level,” he said.
