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

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The view from the observation deck at Shanghai Tower in Shanghai, China, on Sunday, April 9, 2023. China's economic recovery is picking up steam after Covid restrictions were abruptly dropped and the property market stabilizes, although the rebound is still fairly patchy and policymakers have no intention yet of scaling back monetary support. Photographer: Qilai Shen/Bloomberg via Getty Images 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.