FX.co ★ Hong Kong Stocks Rise After London Trade Talks

Hong Kong's stock market experienced an uptick on Wednesday, with the Hang Seng Index climbing 173 points, or 0.7%, to settle at 24,337 during the morning session. This growth follows a slight decline observed the previous day. The index reached its highest point in nearly three months, buoyed by reports of a preliminary trade agreement framework between the United States and China after two days of significant negotiations in London. The framework focuses on alleviating U.S. restrictions on technology exports and addressing China’s limitations on rare earth exports. Locally, Hong Kong reaffirmed its commitment to maintaining its peg to the US dollar, which city leader John Lee described as a “fundamental success factor.” The gains were widespread, with property, financial, and technology sectors leading the charge. However, the upward momentum was tempered by a decline in U.S. futures, as traders awaited the release of May's inflation data with caution. An unexpectedly high inflation figure could exacerbate market volatility amid existing inflation concerns. Meanwhile, apprehensions about fierce competition within the Chinese electric vehicle sector remained. Early rising stocks included Mixue Group (+3.5%), Kingdee International (+2.6%), BOC Hong Kong (+1.9%), and AIA Group (+1.7%).