Hong Kong stocks rose the most in nearly a month on Tuesday, as Chinese President Xi Jinping’s pledge to further open up the economy helped to soothe fears of a trade war with the United States.
The Hang Seng index rose 1.7 percent, to 30,728.74 points, while the China Enterprises Index gained 2.1 percent, to 12,324.02 points.
Xi promised on Tuesday to open the country’s economy further to foreign investors and lower import tariffs on products including cars, in a speech seen as an attempt to defuse an escalating trade dispute with Washington.
“It is possible that measures announced today could help relieve global trade tensions. It is also noteworthy that Xi set a timeline to finish some key reforms this year, suggesting the government might accelerate the reforms,” wrote Chaoping Zhu, Global Market Strategist, J.P. Morgan Asset Management.
“That said, this speech did not represent a major shift in Chinese policy and it is likely the US-China trade dispute will require more negotiation,” he said, advising investors to prepare themselves for more volatility and headline risks ahead.
Most sectors rose on Tuesday. IT stocks rose nearly 2 percent, while the financial sector gained 1.7 percent.
Source: Brecorder
