Hong Kong stocks erase losses on bets Beijing to boost stimulus to counter Trump policies
New data showed that China’s export growth surged to a 27-month high in October, rising 12.7 per cent from a year earlier
The Hang Seng Index jumped 2 per cent to 20,953.34 on Thursday, while the Tech Index strengthened 2.3 per cent. The CSI 300 Index gained 3 per cent, approaching a three-week high, and the Shanghai Composite Index added 2.6 per cent.
Chinese stocks fell earlier, mirroring the 1.8 per cent overnight slump in the Nasdaq Golden Dragon Index in New York, in reaction to Trump’s election victory.
Hotpot chain Haidilao surged 9.3 per cent to HK$17.92, while brewer China Resources Beer advanced 8.5 per cent to HK$32. Sportswear maker Li Ning jumped 5.8 per cent to HK$17.64, and Macau casino operator Galaxy Entertainment added 5.1 per cent to HK$36.35.
Trump beat Democrat Kamala Harris to become America’s 47th president and start his second term in the White House. He had campaigned to impose as high as 60 per cent tariffs on Chinese goods. Analysts said he could further restrict US investments in Chinese industries to protect US manufacturers.
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“For China, the direct earnings impact from higher tariffs is likely to be limited” given that more than 85 per cent of the revenue among the 700-odd members of the MSCI China Index comes from mainland China,” said Tai Hui, Asia-Pacific chief market strategist at JPMorgan Asset Management. “Beijing’s fiscal and monetary policies could offer some offset.”
