Hong Kong stocks jump by most in 6 weeks on Iran-Israel truce as oil slides
Futures on WTI oil tumbled more than 3 per cent to US$66.21 a barrel in Asian trading hours, tempering concerns about global inflation
The Hang Seng Index advanced 2.1 per cent to 24,177.07 on Tuesday for the biggest gain since May 14. The Hang Seng Tech Index also rallied 2.1 per cent. The CSI 300 Index of leading onshore stocks added 2.1 per cent, as did the Shanghai Composite Index.
Alibaba Group Holding rose 1.7 per cent to HK$112.70 and Tencent Holdings added 1.1 per cent to HK$509.50. Aluminium producer China Hongqiao surged 6.4 per cent to HK$16.92 after projecting first-half earnings to rise 35 per cent from a year ago. EV makers Li Auto gained 3.8 per cent to HK$111.70 while Xiaomi strengthened 3.7 per cent to HK$56.90.
CNOOC dropped 1.1 per cent to HK$17.90 and PetroChina shed 0.3 per cent to HK$6.69 on lower oil prices, surrendering some of their hefty gains on Monday.
Trump claimed on Monday that Israel and Iran agreed to a truce over the next 24 hours, just days after authorising a military strike on Iran’s nuclear facilities. The ceasefire came even after Iran attacked US airbases in Qatar and Iraq, and threatened to shut the Hormuz Strait, a major oil shipping route.
Futures on West Texas Intermediate crude tumbled more than 3 per cent to US$66.21 a barrel in Asian trading hours, adding to an 8.6 per cent slump on Monday. Spot gold weakened 0.6 per cent.