EV makers lead HK stocks to nearly one-month high amid easing trade woes

Reuters
05-02
EV makers lead HK stocks to nearly one-month high amid easing trade woes

HONG KONG, May 2 (Reuters) - Hong Kong stocks climbed on Friday to nearly a one-month high as signs of easing Sino-U.S. trade tensions comforted investors, while electronic vehicle $(EV)$ makers rallied on strong sales.

** Hong Kong's benchmark Hang Seng Index .HSI added 1.7% to 22,493.96 as of the midday trading break, the highest since April 3.

** The gain followed the 4.3% decline in April, the worst month for the benchmark since November 2024 as U.S. President Donald Trump's "reciprocal tariff" triggered a global markets rout.

** The Hang Seng China Enterprises Index .HSCE rose 1.8% to 8,224.45 - also a one-month high.

** The mainland markets are closed till next Tuesday for the Golden Week holiday.

** China's Commerce Ministry said Beijing is "evaluating" an offer from Washington for talks over Trump's crippling tariffs, signalling a potential de-escalation in the trade war that has roiled global markets.

** Investors have taken comfort from signs of potential de-escalation between the U.S. and China and the opening of trade talks with Japan and others, analyst at Citi said.

** EV makers are among the top performers in Hong Kong, driven by the strong April delivery figures.

** Xpeng 9868.HK surged 7.6% to a one-week high after reporting a 273% year-on-year surge in smart EV deliveries last month. Peer Li Auto 2015.HK climbed 4.4% and BYD 1211.HK gained 2%, supported by sales increases.

** Tech stocks advanced, with the Hang Seng Tech Index .HSTECH adding 3.3%. Alibaba 9988.HK strengthened more than 4% and Tencent 0700.HK added 2.4%. Both stocks were near their one-month highs.

** The Chinese yuan CNH=D3 strengthened in offshore trading to as much as 7.2524, its strongest level in a month.

(Reporting by Jiaxing Li in Hong Kong; Editing by Sumana Nandy)

((jiaxing.li@thomsonreuters.com; +852 63358304))

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