China, Hong Kong Stocks Surge on Trade Optimism and Tech Rally
Stock benchmarks in China and Hong Kong rose nearly 1% on Tuesday, driven by tech shares amid optimism over potential trade deals, despite a sluggish China service activity report. Strong local currencies such as the yuan boosted investor confidence, reflecting a shift from dollar assets due to potential U.S. economic concerns.
- Country:
- China
Markets in China and Hong Kong experienced a near 1% rise on Tuesday, with optimism about a potential China-U.S. trade deal propelling the gains. Technology stocks, in particular, were buoyant as investors returned from holidays, encouraged by strong Asian currencies indicating a shift from dollar reliance.
China's blue-chip CSI300 Index and the Shanghai Composite Index both climbed nearly 1% by midday, poised for their best day in nearly a month. The Hang Seng Index in Hong Kong also advanced, reaching a one-month high due to robust investor sentiment and a strengthening of the yuan and the Hong Kong dollar.
Despite a private survey indicating slowed growth in China's service sector, investor focus remained on hopes for easing trade tensions following discussions suggested by President Donald Trump. The tech sector, including software and cloud computing, led gains along with stocks in the rare earth industry, showcasing strategic importance amid geopolitical dynamics.
(With inputs from agencies.)
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