The price of the HK50 has risen to 24,158, which is above the highs of October 2024. That marks a sharp rebound from the April lows. The next target is the 24,907 level.
Stocks were boosted after the world’s two largest economies began trade talks that could help avoid a global recession. Officials from the US and China have gathered in London to talk about a range of trade disputes.
Traders are hoping that President Donald Trump will lower his tariffs after securing trade deals with other nations that have sent US stocks surging since April.
Chinese markets were also higher despite the government reporting that exports slowed in May, up 4.8% from a year earlier after jumping more than 8% in April. Exports to the United States were down by 35% in May and almost 10% in January-May in annual terms.
China also said that consumer prices fell 0.1% in May from a year earlier, making it the fourth consecutive month of deflation.
The May Consumer Price Index (CPI) in China fell by -0.1% year-over-year, compared to -0.2% in April. The decline was mostly due to a -1.7% month-over-month drop in energy prices, which made up 70% of the decrease. However, there were some early signs of resilient domestic demand, with hotel accommodation prices up 4.6%, tourism prices up 0.8%, and new clothing prices up 0.6%.
Hong Kong’s stock rally is being led by internet stocks, with Meituan up 4.73%, JD up 4.12%, Trip.com higher by 4.88%, and Alibaba up 2.32%. EV were missed due to the recent price competition fears driven by BYD’s price cuts.
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