CSI 300 Index Rises Amid Optimism for US-China Trade De-escalation

Hong Kong stocks rose significantly for a second day on Wednesday, driven by optimism surrounding the de-escalation in US-China trade tensions after US President Donald Trump hinted at lower tariffs on Chinese goods and assured no plans to remove Fed Chair Jerome Powell. The Hang Seng Index climbed 1.9% to 21,980.78, marking its best performance since April 14. The Hang Seng Tech Index increased by 2.3%. Meanwhile, the CSI 300 Index on the mainland saw a slight rise of 0.1%, while the Shanghai Composite Index fell by 0.1%.

Key players leading the uptick included e-commerce giant Alibaba Group Holding, which surged 5.8% to HK$116.40, and short-video platform Kuaishou Technology, which advanced 3.8% to HK$51.95. Xiaomi, known for its smartphones, made a remarkable 5.3% gain to HK$46.75. Shenzhou International Group, an apparel manufacturer, also saw a nice increase of 4.2% to HK$52.65, and Sunny Optical Technology Group, a supplier to Apple, was up by 4.6% to HK$65.80.

In contrast, Zijin Mining Group experienced a decline of 1.4% to HK$17.76, and China Mobile slipped 1.7% to HK$81.5. In the US, stocks rose correlatively after Trump’s assurance regarding Jerome Powell’s position, with the S&P 500 Index climbing 2.5%. Trump’s promise of a favorable deal with China also encouraged investor sentiment.

Former US Treasury Secretary Scott Bessent conveyed to investors that the ongoing tariff standoff is unsustainable and highlighted the necessity for both nations to de-escalate.

In wider Asia-Pacific activity, Japan’s Nikkei 225 rose by 1.8%, South Korea’s Kospi gained 1%, and Australia’s S&P/ASX 200 advanced by 1.6%. For further details, please visit the source.