Hong Kong stocks surged on Tuesday, driven by news from the White House that U.S. President Donald Trump and Chinese President Xi Jinping may hold talks later this week. The announcement fueled investor optimism about easing ongoing trade tensions between the world’s two largest economies, triggering a strong rally in the Hang Seng Index.
By midday, the Hang Seng Index had climbed 262 points, or 1.13%, to close at 23,420, with trading volume reaching HKD 115.63 billion. During the session, the index briefly surged more than 300 points, reflecting heightened market enthusiasm over the potential high-level meeting. The Hang Seng China Enterprises Index also gained 107 points, or 1.28%, to 8,466, while the Hang Seng Tech Index rose 0.59% to 5,164.
Among blue-chip stocks, electric vehicle manufacturer Li Auto (stock code 2015) led the gains, closing up 6.45% at HKD 117.10. Conversely, Kuaishou Technology (1024) fell 2.67% to HKD 51.05, marking the largest decline within the blue-chip group.
Mainland Chinese markets also showed positive momentum amid the upbeat sentiment. The Shanghai Composite Index increased by 15 points, or 0.48%, to 3,363, while the Shenzhen Component Index rose 35 points, or 0.35%, to 10,076. Analysts suggest that the prospect of renewed dialogue between U.S. and Chinese leaders has boosted risk appetite across both Hong Kong and mainland markets.
Since 2018, trade tensions between the United States and China have caused significant market volatility and uncertainty. The potential summit between President Trump and President Xi is seen as a crucial step toward de-escalating disputes and resuming negotiations, which has been welcomed by investors worldwide.
Wall Street strategists note that any partial agreements on trade or technology restrictions resulting from the talks could help stabilize markets in Hong Kong and mainland China, while also reinforcing confidence in global economic growth. Investors are closely monitoring developments in the coming days to gauge the longer-term market impact.
However, experts caution that while the prospect of talks has sparked short-term market gains, resolving the broader trade issues will take time, and risks remain that could affect future market stability.
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