Hong Kong Leads Asian Stocks Rally After Xi Speech

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2018-04-10 HKT 16:46

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  • A reassuring speech from Xi Jinping spurred the markets. File photo: RTHK

    A reassuring speech from Xi Jinping spurred the markets. File photo: RTHK

Hong Kong and mainland markets rallied on Tuesday as Xi Jinping promised measures to further open up the world's number-two economy, which helped temper concerns about a possible US trade war.

The Hang Seng Index rose 1.7 percent, to 30,728. On the mainland, the Shanghai Composite Index rallied 1.7 percent, to 3,190, while the Shenzhen Composite Index rose 0.5 percent, to 1,841.

Most other Asian markets also rallied after Xi's speech at the Boao Forum.

"Xi's speech sends a positive signal to the market since he backs globalisation and the opening up of China market," Linus Yip, a strategist at First Shanghai Securities, told Bloomberg News.

Japanese stock market added 0.5 percent while Sydney – where a number of firms are listed that rely on China trade – rose 0.8 percent.

Singapore put on 0.6 percent and Seoul added 0.3 percent. There were also healthy gains in Wellington, Taipei, Manila and Indonesia.

Chinese carmarkers were hit by Xi's speech, who said China will allow for greater foreign access to their home market. Hong Kong-listed BAIC fell 7 percent, Dongfeng more than 1 percent, and Brilliance China was off more than 3 percent.

However in Tokyo, Toyota jumped 1.4 percent and Honda added 2.6 percent.

On currency markets the US dollar was boosted by easing trade worries, while it also extended gains against the ruble after after Trump slapped sanctions against Russian oligarchs close to Vladimir Putin following the diplomatic crisis sparked by the poisoning of former spy Sergei Skripal.

The US move also hammered Hong Kong-listed aluminium giant Rusal, which lost more than 50 percent on Monday and fell a further 8.7 percent on Tuesday. (AFP)