Hong Kong stocks cap best gain in almost two weeks as Alibaba jumps before earnings report, Taiwan concerns ease
- A rally in Alibaba Group suggests investors are banking on a better regulatory environment and industry outlook, while BYD advances on sales gain
- Eyes on China’s response to Taiwan relations as military drills, more trade sanctions, sea blockades yet to come
The Hang Seng Index jumped 2.1 per cent to 20,174.04 at the close, posting the biggest increase since July 18. The Hang Seng Tech Index surged 3.2 per cent, while the Shanghai Composite Index added 0.8 per cent.
Alibaba Group gained 5.2 per cent to HK$95, while its unit Alibaba Health Information jumped 5.8 per cent to HK$4.75. JD.com advanced 5.5 per cent to HK$246, and Tencent Holdings added 3.1 per cent to HK$312. Carmaker Geely Automobile added 3.6 per cent to HK$18.22.
“With the earnings season in full swing, companies are expected to post strong results or a turnaround in the outlook,” said Ping An Securities in a report on Thursday. “It’s a good time to build positions now given the low valuations of the broader market.”
While Alibaba may say earnings fell 60 per cent in the June quarter from a year earlier, today’s gain suggests traders may have deemed the worst to be over, as sentiment improves on an easier regulatory environment and economic expansion.
