Hong Kong stocks rally more than 2% on trade hopes

Hong Kong stocks rally more than 2% on trade hopes

FILE PHOTO: A general view of the city of Hong Kong from the Peak Tower
FILE PHOTO: People take photos of Hong Kong from the Peak Tower, China September 5, 2019. REUTERS/Amr Abdallah Dalsh/File Photo

HONG KONG: Hong Kong stocks surged more than 2 per cent on Friday (Oct 11) on optimism over China-US trade talks, while energy firms were boosted by a spike in oil prices after an Iranian tanker was hit by a double explosion in the Gulf.

The Hang Seng Index jumped 2.34 per cent, or 600.51 points, to 26,308.44. 

The benchmark Shanghai Composite Index added 0.88 per cent, or 25.95 points, to 2,973.66, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, climbed 0.31 per cent, or 5.12 points, to 1,636.96.

Top United States and Chinese negotiators wrapped up the first day of trade talks in more than two months on Thursday as business groups expressed optimism the two sides might be able to ease a 15-month trade war and delay a US tariff hike scheduled for next week.

READ: Day 1 of US-China trade talks end with hopes for limited deal

US President Donald Trump said "we had a very, very good negotiation with China", while a White House official said the talks had gone "probably better than expected".

The developments of Sino-US trade talks have been a major factor impacting the Hong Kong market, and any progress or partial agreement would greatly boost investor sentiment, Guodu Hong Kong wrote in a note.

Market participants have been awaiting favourable news for a rebound, as the overall valuations of Hong Kong stocks are quite cheap for now, the brokerage added.

Developments towards a Brexit deal also helped sentiment.

READ: Brexit deal hopes hang on British breakfast with Barnier

A Brexit deal could be clinched by the end of October to allow the United Kingdom to leave the European Union in an orderly fashion, Irish Prime Minister Leo Varadkar said after what he called a very positive meeting with Boris Johnson.

Source: Agencies/nc(aj)

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