HONG KONG, Jan 21 — China and Hong Kong shares edged higher in choppy trade on Tuesday after US President Donald Trump held off rolling out promised tariff hikes, providing some temporary relief to the markets.
By the midday break, the Shanghai Composite index had climbed 0.2 per cent to 3,249.85 points after swinging between gains and losses in early trade.
China's blue-chip CSI300 index gained 0.4 per cent, with the real estate sub-index surging 3.4 per cent and the semiconductor sector jumping 1.2 per cent.
In Hong Kong, the benchmark Hang Seng Index rallied 1.1 per cent to hit a fresh five-week high.
Trump, who had threatened to slap a 60 per cent tariff on Chinese goods, did not immediately impose tariffs on Monday, but instead called for the government to study trade ties before further actions.
Trump appeared more focused on revamping the US government and rejigging ties with neighbours, rather than suppressing China, said Yang Tingwu, fund manager at Tongheng Investment.
That could give Beijing some breathing space to restructure the domestic economy, the success of which determines markets' path going forward, he said.
Elsewhere in the market, property stocks surged, led by a rebound in China Vanke after the developer announced interest payment on a maturing bond, soothing anxiety over its chief executive who was reportedly detained last week.
Peer Country Garden jumped as much as 30 per cent to a 10-month high of HK$0.63 as trading resumed after a nine month-plus suspension to give the embattled property developer time to prepare delayed financial statements.
The rebound in the property sector is a relief rally following recent panic selling, aided by signs of sales improvements in first-tier cities, said Charles Wang, chairman of Shenzhen Dragon Pacific Capital Management Co, adding that "rescuing China's real estate sector is a long-term endeavour." — Reuters
