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Hong Kong stocks jumped following a positive phone call between Chinese President Xi Jinping and US president-elect Donald Trump.
The Hang Seng Index added 1.7 per cent to 19,917.38 as of 9.50am local time, while the Hang Seng Tech Index rallied 2.4 per cent. On the mainland, the CSI 300 Index climbed 1 per cent and the Shanghai Composite Index gained 0.6 per cent.
Leading the pack was e-commerce giant JD.com, which surged 4.1 per cent to HK$152.70, while peer Alibaba Group Holding rose 2.3 per cent to HK$82.60 and tech giant Baidu advanced 2.8 per cent to HK$80.85.
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Xi and Trump exchanged views on major international and regional issues during their phone call on Friday, including the crisis in Ukraine, the Israel-Palestine conflict as well as the US supreme court ban on TikTok.
The TikTok ban was among the topics discussed by the US and Chinese leaders. Photo: Reuters alt=The TikTok ban was among the topics discussed by the US and Chinese leaders. Photo: Reuters>
Trump described the call on his social media as a "very good one", while China's state news agency Xinhua quoted President Xi as saying that the US could be "good friends and partners".
China's Vice-President Han Zheng will attend Trump's inauguration, who will be sworn in as the 47th president of the United States later on Monday.
"Some potential thawing of US-China relations, for example, reports of China's vice-president attending the inauguration, brought some relief to Asia ex-Japan equities this past week," Nomura analysts including Chetan Seth and Anshuman Agarwal said in a report on Monday.
The report added that the looming trade tariffs brought by Trump would provide investors a reason to stay cautious and brace for some volatility ahead.
Meanwhile, China left its benchmark lending rates unchanged at the monthly fixing on Monday. The one-year loan prime rate was kept at 3.1 per cent, while the five-year rate, which influences the pricing of mortgages, was untouched at 3.6 per cent.
Major Asian markets mostly traded higher. Japan's Nikkei 225 gained 1.3 per cent, Australia's S&P/ASX 200 rose 0.3 per cent, while South Korea's Kospi was flat.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
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