Market Resilience Amidst US-China Tariff War

China and Hong Kong shares surged as investors remained hopeful amidst escalating US-China tariff tensions. The market optimistic about negotiations, despite increased tariffs. Meanwhile, Chinese state firms are acting to stabilize domestic shares, and tech companies in Hong Kong saw significant gains.

China and Hong Kong shares demonstrated remarkable growth on Thursday, buoyed by investor optimism despite rising US tariffs on Chinese goods. Negotiations between the two superpowers and support from state firms fueled positive sentiment in the market.

The blue-chip CSI300 Index and the Shanghai Composite jumped by 1.4%, while Hong Kong's Hang Seng surged 3.5%. The uptick followed a significant rise in Chinese internet companies after a temporary US tariff cut on various countries, aimed by President Trump at leveraging trade negotiations.

Analysts suggest that Trump's tariffs, now at 125% on China, may not have the feared impact, as Chinese exports to the US have already been heavily hit. While market volatility continues, prompted by evolving geopolitical stances, China's strategic measures and anticipations for future discussions provide a cautiously optimistic outlook.

(With inputs from agencies.)