JD.com and Alibaba Group Shine as Hong Kong Stocks Surge on US-China Relationship Hopes
JD.com and Alibaba Group Lifted by US-China Tariff Hopes
Hong Kong stocks advanced on Tuesday, driven by confidence in trade negotiations following US President Donald Trump’s announcement of talks with China. The Hang Seng Index rose 2 percent to 20,624.94, marking the largest gain since December 9. The Hang Seng Tech Index soared 3.7 percent.
Mainland stock exchanges remained closed for the Lunar New Year holiday. Technology stocks had a robust day, with JD.com increasing 3.6 percent to HK$157.30 and Alibaba Group Holding climbing 3 percent to HK$96.80. Additionally, Tencent rose 1.2 percent to HK$409.20.
Meanwhile, Li Auto surged 4.7 percent to HK$90.75, and Geely Automobile rose 3.9 percent to HK$15.36. Despite the optimism, Chinese pharmaceutical maker Sinopharm Group fell 0.8 percent to HK$19.94.
A 10 percent US tariff on Chinese goods is imminent, set to take effect shortly, even as Trump reported ongoing talks.
Insider Perspectives on Tariffs and Inflation
Analysts are cautious, predicting significant repercussions on inflation and interest rates. According to Nomura, the upcoming tariffs could notably escalate core inflation, leading to anticipations of no Federal Reserve rate cuts this year.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.