Hong Kong Stocks Have Best Day in Over a Month on Trade Optimism
Hong Kong Stocks Set for Best Day in More Than a Month
(Bloomberg) -- Hong Kong’s battered stocks had their best day in more than a month amid rising trade optimism.
Developer and technology shares were among the best performers as Hong Kong stocks saw the biggest gains in Asia, at the end of a week in which trade headlines roiled markets. The Hang Seng Index added 2.3% while the MSCI Hong Kong Index was 2.4% higher.
China and the U.S. have signaled cautious optimism in securing a partial deal for a temporary truce on tariffs. President Donald Trump said discussions with China are going “really well” and that he plans to meet China’s Vice Premier Liu He on Friday.
As the trade picture improves, the more attractive Hong Kong’s beaten-down stocks look, said Patrick Yiu, managing director at Cash Asset Management Ltd.
“Hong Kong stocks trade at valuations that are very attractive for long-term investors, and you see capital coming into the market amid optimism over trade talks between the U.S. and China,” he said.
“If optimism over trade holds, they could be an attractive long-term buying opportunity.”
A gauge of property stocks rose 3.2%. Wharf Real Estate Investment Co., Sun Hung Kai Properties Ltd., Henderson Land Development Co., and CK Asset Holdings Ltd. rose more than 3.5%.
The outlook for Hong Kong remains clouded, with the city facing its first recession since the global financial crisis. The Hang Seng Index tumbled 8.6% last quarter, the biggest loss among major global gauges tracked by Bloomberg. Developers and mall operators dropped as escalating protests weighed on the economy and deterred travelers to the city.
Hong Kong was braced for another weekend of demonstrations. There were signs protesters may consider less aggressive tactics, after the most destructive weekend since the movement began over four months ago in opposition to now-withdrawn legislation that would’ve allowed extradition to mainland China.
To contact the reporter on this story: Elena Popina in Hong Kong at epopina@bloomberg.net
To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net, David Watkins, Kevin Kingsbury
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