May 6, 2025, 11:47 GMT+7
(Reuters) - China and Hong Kong stock benchmarks rose almost 1% on Tuesday, as expectations for a China-U.S. trade deal outweighed worries from a downbeat China service activity survey.
** Technology shares led the gains as investors returning from holiday breaks were inspired by bullish Asian currencies that suggest a shift away from dollar assets.
** Both China's blue-chip CSI300 Indexand the Shanghai Composite Indexclimbed nearly 1% by the lunch break, on track for their best day in almost a month.
** Hong Kong's benchmark Hang Senggained 0.6% to a one-month high.
** A private sector survey showed on Tuesday that China's services activity expanded at the slowest pace in seven months in April amid uncertainty caused by higher U.S. tariffs.
** However, investors chose to focus on a possible de-escalation in trade tensions after President Donald Trump said on Sunday that the U.S. was meeting with many countries, including China, on trade deals.
** The mood was also lifted by strong local currencies as the yuan jumped to a 1-1/2-month high, while the Hong Kong dollar hit the ceiling of its band again on Tuesday, triggering intervention by the city's central bank.
** Their surge mirrors moves in other Asian currencies amid a broader selloff in the U.S. dollar.
** "The U.S. financial system is still on the edge of a crisis," Chinese brokerage Western Securities said in its mid-year strategy report, advising investors to shift away from dollar assets into "safe assets" including gold as well as Chinese banking and tech stocks.
** China's tech-heavy

STAR

50 Indexrose 1.4% while the Beijing Stock Exchange 50 Index jumped nearly 3%.
** Shares in high-tech sectors including software development, cloud computingand big dataalso rose sharply.
** Meanwhile, an index tracking China's rare earth industryjumped more than 4% on bets the sector will be a key lever in China's geopolitical tussle with the United States.
** In Hong Kong, financial, tourism and shipping stocks were among the biggest gainers.

Sumber : Reuters