Hang Seng Index soars as US, China sign interim deal
The Hang Seng Index is on track to another strong finish, with US and China reaching a temporary consensus on trade tariffs.
The Hang Seng Index (HSI) has jumped up at least 500 points in early Friday trade, following positive updates on the US-China trade front.
US President Donald Trump on Thursday evening signed an interim agreement that would see the US reduce planned tariffs on some US$350 billion worth of Chinese imports by 50%.
In exchange, China has reportedly promised to purchase US$50 billion worth of agricultural products from the US.
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Hang Seng Index ending week on a high
Market sentiment seemed to reflect the improved relations, as the HSI opened 1.9% higher than the previous closing level of 26,983.18.
This is the index’s biggest intraday rally in two months, as it managed to break through the 27,000 ceiling. It also hit a one-month high of 27,497.20.
Yet again, the last day of the business week is proving to be the index’s strongest day by far. The HSI also finished the week ending 06 December on a high.
Between Monday and Wednesday, the Hang Seng was drifting sideways around the 26,450 mark, before growing anticipation surrounding the US-China deal, as well as the US Federal Reserve’s decision not to raise interest rates, gave it a boost on Thursday.
On the individual stock front, Tencent Holdings Limited achieved its highest intraday level since August. It hit HK$360 per share as at 9.35AM this Friday morning.
Rival Alibaba Group Holding Limited (Hong Kong) also reached its highest share price since the day after its debut, with HK$202.80.
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