Hong Kong stocks sustain 3-year-high level as headway on trade talks spurs optimism

The Hang Seng Index rose for a fourth day, climbing 0.8 per cent to 25,319.74 as of 11.06am local time, headed for the highest close since November 18, 2021. The Hang Seng Tech Index gained 1.1 per cent.

On the mainland, the CSI 300 Index and the Shanghai Composite Index both added at least 0.3 per cent.

Biotech firm Wuxi Biologics jumped after it received approval for five manufacturing facilities in the US. Alibaba Group Holding and Tencent Holdings also advanced.

US Treasury Secretary Scott Bessent said on Fox Business that he would meet his Chinese counterparts in Stockholm next week for a third round of trade talks. A 90-day tariff pause between China and the US expires on August 12, after two rounds of negotiations in Geneva and London brought down levies on imports from each nation.

Meanwhile, President Donald Trump said on Tuesday that the US and Japan had struck a trade deal that would impose a 15 per cent tariff on imports from the Asian country and include US$550 billion of Japanese investments in America. That marked a breakthrough in the US’ tariff negotiations with a key trading partner since the April “Liberation Day”.