Hong Kong Shares Soar Amid Trade Deal Optimism

Hong Kong's Hang Seng Index surged to a near three-week peak on Wednesday amid optimism over easing Sino-U.S. trade tensions. U.S. President Trump's conciliatory remarks and assurance to retain the Federal Reserve chief boosted market sentiment. Mainland Chinese shares also saw gains, although modest.

Hong Kong shares soared to nearly a three-week high on Wednesday, aligning with global market trends, as hopes rose for a resolution in the ongoing Sino-U.S. trade tensions. This upswing was fueled by positive signals from U.S. President Donald Trump, who indicated that he would not fire the Federal Reserve chief.

The benchmark Hang Seng Index jumped 2.41% to close at 22,081.42 points, marking its highest level since April 3. The Hang Seng China Enterprises Index rose 2.15%, while the technology-focused Hang Seng Tech Index climbed 3.11%. The market mood was bolstered by a more conciliatory tone from President Trump, raising hopes for a substantial tariff-reducing trade deal with China.

Meanwhile, in mainland China's markets, gains were less pronounced due to ongoing concerns about the volatile nature of trade negotiations. The Shanghai Composite Index and the blue-chip CSI300 Index saw modest increases. Although Chinese exports remain strong, economists at Commerzbank caution that a tangible trade agreement seems unlikely in the near future, amid continued uncertainties.

(With inputs from agencies.)