HK stocks hit over two-week high, gold falls

Hong Kong stocks closed at a more than two-week high at 22,072 points on Wednesday, after US President Donald Trump signaled a potential U-turn on his trade war with China.

The benchmark Hang Seng Index once rose as high as 22,138 before closing 510 points or 2.37 percent higher.

The main board turnover was HK$260.62 billion.

The Hang Seng Tech Index rose 3.07 percent to 5,049 points.

Tracker Fund of Hong Kong (2800) rose 2.3 percent to HK$22.40, leading the market by turnover with HK$20.03 billion.

Xiaomi (1810) climbed 6.9 percent, making it the best-performing blue chip and the second most actively traded stock.

HSBC (0005) advanced 4.3 percent, marking growth for the straight fourth day.

Gold prices fell after Trump said he has "no intention" of firing US Federal Reserve chief Jerome Powell and expressing optimism for a trade deal with top metals consumer China.

He revealed that the high tariffs on Chinese goods will “come down substantially, but it won’t be zero.”

Spot gold declined 1.93 percent to US$3,316.23 an ounce as of 4.30pm.

In Hong Kong, gold miners' shares dropped.

Zhaojin Mining Industry (1818) slid 8.4 percent, Zijin Mining (2899) lost 4.77 percent, and Chifeng Jilong Gold Mining (6693) dropped 15.81 percent.

Chow Tai Fook (1929) slumped 7 percent, making it the day’s worst-performing blue chip.

In mainland China, the Shanghai Composite Index dipped 3 points to 3,296 while the Shenzhen Component Index climbed 65 points, closing at 9,935.

STAFF REPORTER