Hong Kong Stocks Gain As Xi Speech Calms Markets

Hong Kong stocks rallied more than 1 percent in the morning session on Tuesday as investors welcomed President Xi Jinping's promise to further open his country's economy, easing US trade war fears.

The Hang Seng Index jumped 1.1 percent, to 30,574 by the noon break.

On the mainland, the Shanghai Composite Index rose 0.5 percent, to 3,154, but the Shenzhen Composite Index was down 0.3 percent, at 1,826.

Most other Asian markets rallied after President Xi, In a much anticipated speech at the Boao Forum – dubbed the Asian Davos – pledged a "new phase of opening up", adding that Beijing "does not seek a trade surplus" and wants to boost imports.

"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.

"Investors were very worried about trade disputes, while his speech calms the nerves a lot. The concern about trade disputes in near-term are still here however, since what Xi pictures is a very long-term picture."

Tokyo added more than one percent by the break.

Sydney – where a number of firms are listed that rely on China trade – rose 0.8 percent, Singapore put on 0.2 percent and Seoul added 0.3 percent.

There were also healthy gains in Wellington, Taipei and Indonesia. (AFP)

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