Tariff Truce Extension Boosts China & Hong Kong Markets
China and Hong Kong shares rose on Tuesday as a 90-day extension of the tariff truce between the U.S. and China bolstered investor sentiment. The Shanghai Composite rose 0.5% and Hong Kong's Hang Seng increased by 0.25%. Investors are now focusing on the upcoming U.S.-Russia summit.
An extension of the tariff truce between the United States and China gave a boost to China and Hong Kong shares on Tuesday, signaling a more optimistic climate for investors. On Monday, Washington and Beijing decided to prolong the truce by 90 days, aligning with market expectations.
The Shanghai Composite index gained 0.5%, reaching its highest level since December 2021, and the CSI300 index rose by 0.52%. Meanwhile, Hong Kong's Hang Seng increased by 0.25%. Economists like Zhiwei Zhang from Pinpoint Asset Management noted that this move was anticipated by financial markets, diverting investor attention to the upcoming U.S.-Russia summit.
U.S.-China trade talks continue to yield positive signals for the markets, with China's blue-chip stocks rising 15% and Hong Kong's Hang Seng up by over 20% since early April. Semiconductor companies significantly benefited, with Wafer Works and Cambricon Technologies shares surging 20% and SMIC shares climbing 5%, following Beijing's recommendation against using Nvidia's H20 chips.
(With inputs from agencies.)
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