Hong Kong Market rises as Wall Street's gains lift mood

Hong Kong share market inclined on Monday, 09 July 2018, as Wall Street's rise late last week Friday on better-than-expected jobs data stateside buoyed the market mood. However, market gain was capped as investors continued to keep an eye on trade after the U.S. and China exchanged tariffs last week. At midday break, the Hang Seng Index advanced 424.47 points or 1.5% to 28,740.09. The Hang Seng China Enterprise index added 209.37 points or 1.97% to 10,831.99. Half-day turnover increased to HK$53.5 billion from HK$44.85 billion on Friday.

The improvement in sentiment came in spite of Friday's developments on the trade front when U.S. tariffs on $34 billion in Chinese goods took effect, ramping up the country's ongoing trade spat with China. China followed up by promptly imposing duties of its own on the same value of U.S. products. China's Ministry of Commerce said it had no choice but to respond to the U.S. after the latter "launched the largest trade war in economic history." U.S. President Donald Trump said on Friday that an additional $16 billion of Chinese goods would be subject to tariffs in two weeks, and that he was considering further slapping duties on an additional $500 billion in Chinese products.

Chinese financials rose across the board. CCB (00939) and ABC (01288) rose 2.3% to HK$6.96 and HK$3.64. ICBC (01398) added 2.4% to HK$5.66. BOC (03988) gained 1.4% to HK$3.72. CM Bank (03968) jumped 4.3% to HK$28.2.

Insurers also fared better. Ping An (02318) put on 2.9% to HK$71.7 despite JP Morgan's target price downgrade. China Taiping (00966) soared 9.1% to HK$25.9. NCI (01336) surged 6.7% to HK$33.35. China Life (02628) shot up 4.4% to HK$20.

Chinese smartphone maker Xiaomi slipped as much as 6% on its debut in Hong Kong after it priced its initial public offering at the lower end of its target range having failed to woo investors.

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