China stock market found its feet on Thursday as hopes for new trade negotiations between Washington and Beijing grew.
Reuters reported that Chinese officials have delivered a written response to U.S. trade demands, raising prospects that the two economic giants may take measures to deescalate their months-long trade bitter trade relations.
The SZSE Component closed 1.18% higher, while the benchmark Shanghai Composite index gained 1.36%. China Hi-TechGroup Co Ltd, was one of the biggest gainers on Thursday on the Shanghai Composite, after adding 0.52 points, or 10.08% to end at 5.68.
Tengda Construction Group Co Ltd added 0.240 points, or 10.04% to 2.630, while Shanghai Shibei Hi-Tech Co Ltd A climbed by 0.76 points, or 10.04% to close at 8.33.
Nanjing Chixia Development Co Ltd, was among the biggest losers on Thursday closing at 3.460 after shedding 0.190 points, or 5.21%. Shanghai Zhongyida Co Ltd B dropped 0.007 points, or 5.11% to 0.130, while Harbin Gong Da High-Tech Enterprise Development Co Ltd shaved off 0.160 points, or 5.11% to close at 2.970.
China’s H-share index listed in Hong Kong has lost 11.1% since the beginning of the year, while Shanghai stock index has declined 20.41%. Meanwhile, Hong Kong’s Hang Seng Index added 1.75%, or 448.91 points to close at 26,103.34. Tencent Holdings Ltd, a component of the index, contributed 29% of the gains after posting higher-than-anticipated third quarter results.
The Shenzhen-based company reported a profit of $3.39 billion, or 23.3 billion yuan for the 13-week period to September 30, representing an increase of 30% and flying past analyst estimates. Tencent said the profit included $1.3 billion, or 8.8 billion yuan gain from the listing of Meituan Dianping food and delivery company in Hong Kong.
The WeChat owner came out with revenue of 80.6 billion yuan, up 24% and in line with expectations. Shares of the company ended the session with a gain of 5.80% following the results.
U.S. stocks, on the other hand, closed lower Wednesday, as the Dow fell into a wild session. Apple Inc. extended its loses to close the session at $186.80 after several of its suppliers including Lumentum Holdings cut their outlooks citing falling demand for pricier smartphones.
The Dow suffered its fourth consecutive decline after dropping 0.8%, or 205.99 points to end at 25,080.50. The Nasdaq Composite Index gave away 0.9%, 64.48 points to 7,136.39, while the Standard & Poor’s 500 index declined 0.8%, or 20.60 points to 2,701.58.
