Hong Kong Stocks Rise as Investors Await Earnings from Banking Heavyweights

Hong Kong stocks experienced a notable rise as investors keenly await pivotal earnings from major banking players amid ongoing US-China tariff discussions. The Hang Seng Index climbed 0.4% to settle at 22,063.94 as of 9:47 am local time, while the Hang Seng Tech Index rose 0.8%. Meanwhile, both the CSI 300 Index and the Shanghai Composite Index recorded a slight decrease of 0.1%.

In the biotech sector, WuXi AppTec surged 4.6% after exceeding profit forecasts, while CSPC Pharmaceutical Group rose 3.8%. Alibaba Health Information Tech also gained 2.4%, alongside CK Hutchison Holdings which saw a rise of 2%.

Conversely, Li Ning, a prominent Chinese sportswear brand, faced a decline of 2% due to first-quarter sales that fell short of expectations. Similarly, China Petroleum and Chemical (Sinopec) dropped 1.5%, while electric vehicle maker BYD softened by 1.1%.

Commenting on the ongoing tariff situation, US Treasury Secretary Scott Bessent emphasized that the US is awaiting a response from China to initiate dialogue. According to Morgan Stanley’s chief Asia economist Chetan Ahya, a de-escalation of tariffs is anticipated, though significant agreements may require time to materialize, leaving tariffs elevated for the foreseeable future.

Major financial institutions including HSBC Holdings, Bank of China, ICBC, Bank of Communications, and China Construction Bank are slated to report their earnings today. Notably, HSBC saw a slight uptick of 0.5%, while Bank of China advanced by 0.9%.

Fabiana Fedeli, Chief Investment Officer at M&G Investments, pointed out that while some sectors might encounter hardships due to tariffs, areas backed by domestic innovation and governmental measures to stimulate consumption should remain resilient.

Across the Asia-Pacific, regional indices like Japan's Nikkei 225 and South Korea's Kospi also recorded gains of 0.4% and 0.6%, respectively.