Hong Kong stocks jump as Xi-Trump call soothes North Korea fears
Hang Seng Index closes 0.9 per cent higher at 24,313.5, having shed as much as 0.4 per cent in earlier trading
Hong Kong stocks enjoyed a late surge on Wednesday to erase earlier losses, after China’s President reportedly called for a peaceful resolution of the North Korean security crisis in a phone call to his American counterpart.
The Hang Seng Index shot up in the late afternoon to close 0.9 per cent higher at 24,313.5, having shed as much as 0.4 per cent at one point. The remarkable turnaround ended a four-day losing streak for Hong Kong’s benchmark index.
Concerns about geopolitical tensions in North Korea were to some extend relieved after the Xi-Trump call
The Hang Seng China Enterprises Index also rose sharply in the afternoon advancing 0.4 per cent to 10,208.3.
“Concerns about geopolitical tensions in North Korea were to some extend relieved after the Xi-Trump call,” Linus Yip Sheung-chi, First Shanghai Securities’ chief strategist, said.
President Xi Jinping urged a peaceful resolution of the North Korean nuclear crisis in a phone call he made to his US counterpart Donald Trump on Wednesday, according to a report by China’s state media.
“Xi Jinping has stressed that China insists on denuclearisation on the Korean Peninsula to firmly safeguard peace and stability on the peninsula and calls for peaceful means to solve problems,” the CCTV report said, summarising the conversation between Xi and Trump.
