Global financial markets were marked by contrasting dynamics on Tuesday, influenced by geopolitical and economic factors : Hong Kong saw its shares reach their highest level in three years, while certain sectors, such as wines and spirits, found themselves under pressure due to threats of new customs surcharges. At the same time, Kering continued to see its shares fall after a controversial strategic decision.
Hong Kong’s outstanding stock market performance
Hong Kong equities, represented by the Hang Seng Index (HSI), posted a remarkable 2% gain on Tuesday, bringing its year-to-date gain to 23%. This is the biggest rebound among the world’s major stock markets. This performance is the direct result of China‘s more optimistic economic outlook.
Indeed, investors are increasingly confident that the economy in the Middle Kingdom will recover, thanks in particular to recent economic data and measures taken by the government to support domestic consumption : China recently announced childcare subsidies and a “special action plan” to stimulate domestic consumption.
These announcements, accompanied by figures showing an acceleration in retail sales growth in January and February, bolstered investor confidence. As a result, the Chinese yuan remained close to its highest levels of the year, and capital flows to Hong Kong, as Asia’s financial center, continued to grow, reflected in lower interbank rates in the region.
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