Hang Seng Index up in early trade; Alibaba, Tencent shares gain
Hong Kong benchmark Hang Seng Index rallied to begin Friday trade, on the back of positive US-China trade updates.
Hong Kong benchmark Hang Seng Index gained 0.43% to begin the week’s final trading day (Friday 06 December), hitting 26465.7 by mid-morning, according to IG trading figures.
This has been the strongest day by far this week, trading at least 500 index points above the trough.
IG Asia Market Strategist Jingyi Pan attributed the increase to ‘closer contact’ between US and Chinese trade officials, as well as the global anticipation for a trade deal ahead of the December 15 US tariffs on Chinese goods.
‘For Asia markets, mild gains look to be the tone kickstarting the Friday against the current backdrop. The wait continues for the outcome of the trade talks with any trade deal pertinent to keep this atmosphere going past next week,’ said Pan.
In line with this sentiment, property and technology stocks also gained.
The Hang Seng property sub-index rose as much as 0.8%, while the information technology sub-index swelled by 1.5%, according to market data.
Property developers Henderson Land Development Co Ltd rallied 0.7% to HK$37.75 per share; Sun Hung Kai Properties Limited surged 1.1% to HK$113.10 per share, and New World Development Co Ltd increased 0.8% to HK$10.12 per share.
On the technology front, Chinese competitors Tencent Holdings Limited and Alibaba Group Holding Limited stocks each climbed 1.2% and 1.7% respectively to a price per share of HK$333.80 and HK$195.60 each.
The top gainer in the IT sector, however, was AAC Technologies Holdings Inc, with a boost of 8.27%.
Chinese H-shares, which are shares of companies incorporated in mainland China that are traded on the Hong Kong Exchanges and Clearing, grew 0.54% to 10,377.1 in early proceedings. The biggest gainer was Want Want China Holdings with a 2.79% price hike.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
