Two-month high for Hong Kong Stocks by midday

Hong Kong stocks hit a nearly two-month high, seemingly benefiting from the upcoming talk between Chinese and United States leaders.

The benchmark Hang Seng Index once hit 20,885 points in the morning session. It ultimately rose 2 percent to 20,622 points by midday.

US President Donald Trump said his administration plans to speak with China, raising the possibility of a potential reprieve on a 10 percent tariff set to take effect within hours after he delayed levies on Canada and Mexico.

Xiaomi (1810) and Semiconductor Manufacturing International Corporation (0981) both hit another record high – once rising 5.3 percent and 8.2 percent, respectively.

Xiaomi stood at HK$39.30 apiece while SMIC's shares were at HK$44.75 by midday.

Mainland electric vehicle shares also rose. BYD (1211) increased 3.9 percent and Geely Automobile (0175) gained 6.6 percent.

XPeng (9868) soared 12.57 percent after its deliveries last month increased 2.7 times.

The Hang Seng Tech Index went up 3.91 percent to 4,922 points by midday.

STAFF REPORTER AND BLOOMBERG