Hong Kong stocks rise as hopes of US-Iran talks ease oil price fears

Hong Kong stocks advanced on Wednesday, tracking overnight gains on Wall Street, as renewed optimism over a potential resumption of US-Iran talks eased geopolitical concerns and dragged oil prices lower.

The benchmark Hang Seng Index closed 0.3 per cent higher at 25,947.32, extending a 0.8 per cent gain on Tuesday. On the mainland, the CSI 300 Index fell 0.3 per cent while the Shanghai Composite Index was little changed. The ChiNext Index closed 1.2 per cent lower after jumping as much as 1.1 per cent to briefly touch a decade high.

Laopu Gold jumped 6.8 per cent to HK$673 after the Chinese government recently announced it would issue a new round of consumption coupons to boost spending. E-commerce major Alibaba Group Holding added 3.3 per cent to HK$128.60 and peer JD.com advanced 4.6 per cent to HK$120.70. Biopharmaceutical firm Innovent Biologics climbed 5.9 per cent to HK$91.40, and CSPC Pharmaceutical Group advanced 3 per cent to HK$9.44.

Limiting gains, electric-vehicle maker BYD lost 1.9 per cent to HK$107.30, and Li Auto declined 2.9 per cent to HK$70.90.

Overnight in the US, the S&P 500 Index rose 1.2 per cent and the Nasdaq climbed 2 per cent. Brent crude fell 0.2 per cent to US$94.6 a barrel.

Investor sentiment strengthened on hopes that a de-escalation in Middle East tensions following weeks of conflict could ease pressure on oil prices and inflation, while providing a tailwind for global growth.