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Hong Kong stocks jump on tech rally; China shares edge up

By Reuters News

By Summer Zhen

HONG KONG, Nov 5 (Reuters) - Hong Kong stocks jumped while China shares inched higher on Thursday as market sentiment recovered post-US midterms, with tech and gold shining while energy stumbled.


** China's blue-chip CSI300 Index .CSI300 climbed 0.4% by the lunch break, while the Shanghai Composite Index .SSEC edged up 0.1%.

** Hong Kong benchmark Hang Seng .HSI advanced 3%.

** The gains track Wall Street's overnight rally as investors welcome lower uncertainty.

** Hang Seng Tech .HSTECH surged 5%, with Alibaba 9988.HK and Tencent 0700.HK gaining more than 7% and 5% respectively.

** In mainland markets, investors favored gold miners .CSI930619, solar power .CSI931151, semiconductors .CSI931743 and new energy .CSI399808, but sold oil .CSIEN and optical communication shares .CSI000916.

** "China and Hong Kong remain relatively attractive," after an October correction, Morningstar analysts said in an investment outlook on Thursday.

** The research firm is bullish on Alibaba and Tencent as AI adoption is beginning to translate into revenue growth.

** After Democrats' sweeping midterm election win, Cliff Zhao, chief economist at CCB International, expects US-China competition in advanced technology to continue with Democrats possibly strengthening congressional oversight of Commerce Department export licenses and pushing for related restrictive legislation.

** "China's domestic technology supply chain may become further differentiated," Zhao said, adding hardware exporters that depend heavily on US AI capex may be affected, while GPUs, semiconductor equipment, advanced packaging, and computing-infrastructure may continue to benefit from technological self-reliance needs.

** Meanwhile Zhiwei Zhang, chief economist at Pinpoint Asset Management, suggested "US-China relations will become more uncertain next year."

** State-backed oil producer PetroChina 601857.SS fell 7% by midday after Brent crude futures dived nearly 9% overnight, as Democrats' midterm victory raised hopes for an end to the US-Iran war.

** The smaller Shenzhen index .SZSC was up 1.69%, the startup board ChiNext Composite index .CNT was higher by 1.24% and Shanghai's tech-focused STAR50 index .STAR50 was up 2.11%​.

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