Chinese shares rose before earnings announcements by key tech firms, with sentiment also boosted by a positive report on Contemporary Amperex Technology’s offering.
The Hang Seng China Enterprises Index climbed 2.5%, recouping losses from the previous session. Tencent Holdings, Xiaomi Corp and Alibaba Group Holding were the biggest contributors to the gauge’s gains. The onshore benchmark CSI 300 Index rose 1.2%.
Optimism over tech earnings has risen after JD.com. reported robust results for the March quarter. That’s helped revive appetite for local shares after easing US-China trade tensions damped hopes for more stimulus from Beijing.
Tencent is expected to release results later Wednesday, while Meituan and Alibaba Group are due to announce earnings on Thursday.
“Hong Kong stocks are being led by tech optimism amid the first quarter earnings season,” said Marvin Chen, a strategist at Bloomberg Intelligence. “Strong results from JD.com are lifting sentiment and other tech giants reporting this week can also deliver solid results.”
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Sentiment was also boosted after people familiar with the matter said CATL was poised to price its share offering at the top end of the range it had earlier indicated.
Meanwhile, financial shares led the onshore market higher, with analysts pointing to a need for domestic mutual funds to increase their holdings in the sector in line with recent industry guidelines.
