Hong Kong stocks gain 4% as China vows support for ailing property market

Hong Kong stocks saw a strong rebound and the Hang Seng index climbed over 4% on Tuesday after China’s Politburo pledged to “adjust and optimize policies in a timely manner” for its ailing property sector.

The Hang Seng Tech index also surged over 6%, led by Chinese electric vehicle makers.

Beijing’s top decision making body also vowed to “elevate stable employment to a strategic goal,” along with other pledges to boost consumption and tackle debt risks.

This comes after disappointing economic data last week prompted renewed calls for policy support to bolster growth.

Mainland Chinese stocks were also all higher, with the Shanghai Composite up 2.13% to close at 3,231.52, its highest one day gain since February. Meanwhile, the Shenzhen Component rose 2.55% and ended at 11,021.29, the highest one day gain since October 2022.

Other Asian markets were also mostly up. South Korea’s Kospi traded up 0.3% and closed at 2,636.46, while the Kosdaq was 1.08% higher and ended at 939.96, resuming its climb after snapping nine straight days of gains on Monday. 

South Korea saw a 0.9% year-on-year growth in its second quarter gross domestic product, according to advance estimates on Tuesday.

Australia’s S&P/ASX 200 extended its gains from Monday, rising 0.46% and finishing at 7,339.7. However, in Japan, the Nikkei 225 fell marginally to end at 32,682.51, while the Topix rose 0.18% to close at 2,285.38 and extend its winning streak to four days.

Overnight in the U.S., all three major indexes rose as the Dow Jones Industrial Average extended its winning streak to 11 days, its longest run since February 2017.

The Dow gained 0.52%, while the S&P 500 rose 0.40% and the Nasdaq Composite added 0.19%.

— CNBC’s Sarah Min and Tanya Macheel contributed to this report