Hong Kong Stocks rise as Trump drop Mexico tariffs threat

Headline indices of the Hong Kong share market closed sharp higher on Monday, 10 June 2019, as risk sentiments boosted up after better-than-expected China's trade data for May and news that U.S. President Donald Trump had suspended plans to impose tariffs on Mexico after the two countries arrived at an agreement on immigration. At closing bell, the Hang Seng Index advanced 2.27%, or 613.36 points, to 27,578.64. The Hang Seng China Enterprises Index was up 1.86%, or 192.60 points, to 10,526.92. Turnover increased to HK$91.9 billion from HK$67.1 billion on Thursday. The local market closed on Friday for Dragon Boat Festival holiday.

Local market received a boost after the United States and Mexico struck a deal late Friday to avert a tariff war, with Mexico agreeing to meet U.S. demands to stem the flow of illegal Central American migrants. Trump had threatened to impose 5% import tariffs on all Mexican goods starting on Monday if Mexico did not commit to do more to tighten its borders.

 

China's General Administration of Customs said on Monday that exports in May inched up 1.1% year-on-year, while imports fell 8.5% during the same period, as a result, China's overall trade surplus was $41.65 billion in May. In April, China's overall trade surplus in April was $13.8 billion, far below the projected $35 billion. That's partly due to an unexpected rise of 4% in imports, and a surprise fall of 2.7% in exports for the month.

Shares of Macau gaming companies closed higher. Melco International (00200) shot up 3.4% to HK$16. Sands China (01928) surged 6.7% to HK$37.3. SJM Holdings (00880) advanced 3.9% to HK$9.01. MGM China (02282) mounted 6.3% to HK$12.24. Galaxy Entertainment (00027) soared 7.2% to HK$50.15 becoming the top blue-chip winner. Wynn Macau (01128) rose 4.9% to HK$16.4.

The White House's acting budget chief Russell T. Vought wrote to Vice President Mike Pence, requesting for a delay in implementing key provisions of a law that restricts the US government's business with Huawei Technologies. Sunny Optical (02382) soared 6.8% to HK$72.15. AAC Technologies (02018) jumped 4.3% to HK$42.5.

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