Tech brigade propels stocks toward 21,000 mark

Hong Kong stocks hit a three-month high amid expectations of improved Sino-US ties with mainland tech firms leading the charge.

The benchmark Hang Seng Index rose by 294 points or 1.4 percent to close at 20,891 points, a new high for this year and since early November last year. Turnover on the main board was HK$178.45 billion.

In the mainland, the Shanghai Stock Exchange Index rose 1.27 percent or 41 points to 3,270 points, while the Shenzhen Component Index jumped 2.26 percent or 229 points to 10,393 points.

The rallies came after the US Postal Service made an abrupt U-turn last night to resume accepting international inbound shipments from China and Hong Kong - less than 24 hours after announcing a suspension.

The Hang Seng Tech Index climbed 2.6 percent to 5,059 points, a new high in nearly four months.

Chinese chipmakers Semiconductor Manufacturing International Corporation (0981) and Hua Hong Semiconductor (1347) both jumped over 7 percent.

BYD Electronic (0285) and its parent BYD (1211) were the top two best-performing HSI constituents, surging nearly 20 percent and 12 percent respectively, amid news that the electric car giant will hold a press conference regarding its strategy about intelligent products and solutions next week.

In money markets, the onshore yuan weakened by 1.75 percent to 7.29 yuan (HK$7.79) against the US dollar.

In commodities, gold held steady near US$2,870 (HK$22,386) an ounce after hitting record highs, with rising economic and geopolitical risks supporting haven demand.

Staff reporter and agencies