Hong Kong stocks rise as investors reduce US-China tensions

Trump blasts China over Hong Kong national security law

Hong Kong Hang Seng Index (HSI) rose more than 3.3% in morning trade. It was the first opportunity for investors there to begin Washington’s “process to eliminate policy exemptions that give different and special treatment to Hong Kong” from mainland China, US President Donald Trump said last week.
Trump’s response was an increase in tension between the US and China – President He detonated Beijing because he approved a national security law that fundamentally damaged Hong Kong’s autonomy.
Experts, however, noted that Trump’s action will likely have little effect on Hong Kong. not exporting too much goods USA.

Trump’s comments, “It took a long time, but a short time on China’s criticism,” wrote Stephen Innes, AxiCorp’s global market strategist, in a research note on Monday.

Other major indices in Asia were also higher on Monday. South Korea Kospi (KOSPI) Rose 1.5%, Japan Nikkei 225 (N225) 1.2% and China’s Shanghai Composite Index (SHCOMP) Rose 1.7%.

“The reopening of optimism reigns supreme,” Innes said.

New data from China shows factories that are starting to recover from the pandemic.

Production activity in the country increased unexpectedly last month, according to a special survey closely monitored. Media group Caixin said on Monday that China’s manufacturing purchasing managers index rose from 49.4 in April to 50.7 in May. Also, analysts Refinency was expected. A number above 50 points indicates growth.

“Production production recovered faster than demand as it recovered from the epidemic,” Caixin Insight Group senior economist Wang Zhe said in a statement accompanying Caixin data. However, Wang adds that exports are stagnant as the rest of the world continues to deal with the virus.

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Chinese government at the weekend reported that the official manufacturing PMI grew in May. According to Oanda Asian Pacific market analyst Jeffrey Halley, the unofficial PMI study measuring the services sector also showed expansion.

US stock futures his voice was muted. Dow (Indi) futures increased by 0.1% Nasdaq (COMP) and S&P 500 (SPX) futures were mostly fixed.

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