Hong Kong Hang Seng bounces 0.47%

Headline shares of the Hong Kong share market closed higher on Friday, 06 July 2018, with investor chased for value buying on recently battered stocks after the planned U.S. tariff implementation against Chinese imports, removing an uncertain factor from the market. At the close of trade, the Hang Seng Index rose 133.53 points or 0.47% to 28,315.62. The Hang Seng China Enterprises Index added 14.56 points or 0.14% to 10,622.62. Turnover increased to HK$98.5 billion from HK$93.4 billion on Thursday.

There was a level of calm on Asian markets after Trump's tariffs began on Chinese products. The United States tariffs on Chinese exports began from Friday, 06 July 2018. China's customs department informed markets on Thursday that China's retaliatory tariffs on US goods will take effect immediately after US tariffs on Chinese imports kick in. The Trump administration has levied a 25% tariff on $34 billion in Chinese goods, while the Chinese government has retaliated by announcing tariffs on the same value of U.S. goods.

Samsung Electronics said its 2Q operating profit growth of 5%, lower than market expectations. BYD (01211), a major component supplier to Samsung, plunged 4.8% to HK$9.26.FIH Mobile (02038) dived 6.1% to HK$1.07.

ZTE (00763) gained 3.9% to HK$12.7 after the US government lifted part of its bans on the company. YOFC (06869) dipped 4.4% to HK$29.15 after Credit Suisse's target price cut.

OFFSHORE MARKET: US share markets were closed higher on Thursday, on reports that the United States and the European Union might agree to drop auto tariffs. The Dow Jones Industrial Average .DJI rose 181.92 points,or 0.75%, to 24,356.74, the S&P 500 .SPX gained 23.39points, or 0.86%, to 2,736.61 and the Nasdaq Composite .IXIC added 83.75 points, or 1.12%, to 7,586.43.

European share markets rose on Thursday amid optimism that U.S. President Donald Trump could hold off on threats to slap tariffs on European cars. The STOXX600 index rose by 0.4%; German Dax rose by 1.2%; UK FTSE index rose 0.4%.

COMMODITY NEWS: Crude oil prices fell on Thursday as US crude stockpiles rose by 1.3 million barrels last week according to the US EIA. Markets had a expected a 3.5 million decline. Brent crude fell by US85 cents or 1.1% to US$77.39 a barrel and the US Nymex fell by US$1.20 or 1.6% to US$72.94 a barrel.

Base metal prices were mixed on the London Metal Exchange (LME) on Thursday. Zinc (-0.5%) fell to 12-month lows due to higher supply expectations. Lead rose by 1.4%.

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